Finance companies commonly act as ____ for accounts receivable; that is, they purchase a firm's receivables at a discount and are responsible for processing and collecting the balances of these accounts.

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Factors commonly purchase a firm's receivables at a discount and take responsibility for processing and collecting the balances of these accounts. Brokers, dealers, and market makers do not typically engage in this type of transaction.

Finance Companies Commonly Act as ____ for Accounts Receivable; That