Which of the following is NOT an advantage of factoring?
A) Accounts receivable immediately turned into cash.
B) Elimination of credit and collection department.
C) Creation of a known pattern of cash flows.
D) The effective interest rate.

Question

Quizplus · Accepted Answer

The effective interest rate is actually an advantage of factoring, as it can often result in a lower rate than traditional borrowing methods. Therefore, option D is the correct answer as it is the only one that is not an advantage of factoring.

Which of the Following Is NOT an Advantage of Factoring