Factoring involves the lender buying the accounts receivable assets of the borrowing company at a discount to their face value.If the factoring company can recover future bad debt from the borrowing company,this is called:

Question

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Conventional factoring is when the factoring company can recover future bad debts from the borrowing company. In this type of factoring, the lender buys the accounts receivable assets of the borrowing company at a discount to their face value. The other options do not fit the scenario described in the question.

Factoring Involves the Lender Buying the Accounts Receivable Assets of the Borrowing