Inventory can be used as collateral for all the following EXCEPT:

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Factoring arrangement involves selling accounts receivable to a factor, which then collects payment from customers. Inventory cannot be used as collateral in a factoring arrangement. On the other hand, inventory can be used as collateral in A) a public warehousing arrangement where the goods are stored in a warehouse that is open to the public, B) a private warehousing arrangement where the goods are stored in a private warehouse, and C) a trust receipt where the bank holds the inventory as collateral until the borrower is able to repay the loan.

Inventory Can Be Used as Collateral for All the Following