Which one of the following statements regarding factoring is correct?
A) Some banks and bank subsidiaries may provide factoring.
B) Under with-recourse factoring, when a customer makes a payment the factoring company passes the money on to the company minus a handling fee.
C) The discount charged by the factoring company is approximately equal to the rate charged on a secured overdraft loan.
D) With non-recourse factoring, the company cannot sell additional accounts receivable to the factoring company after the initial amount.
Correct Answer:
Verified
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