The form of short-term finance where another entity takes over the firm's debtors' accounts for a payment of around 85% of the accounts balance is known as:

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This form of finance is specifically known as debt factoring, where a company sells its accounts receivable to a third party (known as a factor) for a cash payment. This process enables the company to receive its money quicker, without having to wait for customers to pay their bills. The factor then takes over the responsibility of collecting the debts, deducting a fee or percentage of the accounts as their commission. Discounting (B) refers to the selling of bills of exchange to a bank at a discounted value. Bills receivable (A) refers to the monetary value of outstanding payments due to a company from its customers.

The Form of Short-Term Finance Where Another Entity Takes Over