________ is the process whereby the firm sells receivables to a lender at a discount (say 2 percent)to the actual value of the receivables.Customers then repay the money they owe to the firm directly to the lender instead.
A)Factoring of payables
B)Loan sharking
C)Bridge loaning
D)Factoring of receivables

Question

Quizplus · Accepted Answer

Factoring of receivables is the process of selling accounts receivable to a lender at a discount. This provides the firm with immediate cash flow and reduces the risk of non-payment by customers. Customers then make payments directly to the lender, who is responsible for collecting the full amount owed. Factoring of payables, loan sharking, and bridge loaning are unrelated to this process.

________ Is the Process Whereby the Firm Sells Receivables to a Lender