Which of the following is NOT a method for lenders to control pledged inventory?
A) Blanket inventory liens
B) Trust receipts
C) Warehousing
D) Factoring

Question

Quizplus · Accepted Answer

Factoring is a method of financing in which a company sells its accounts receivables to a factoring company at a discount in exchange for immediate cash. It is not a method for lenders to control pledged inventory. Blanket inventory liens, trust receipts, and warehousing are all methods for lenders to control pledged inventory.

Which of the Following Is NOT a Method for Lenders