A type of short-term loan where the borrower sells its accounts receivables to the lender at a discount to face value is called

Question

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The scenario described in the question is that of factoring, where a company sells its accounts receivables to a lender at a discount in exchange for immediate cash. Choice A refers to a requirement for a company to keep a certain minimum balance in its account as collateral, while choice B refers to the transfer of rights over an asset or property. Choice C refers to a document issued by a bank that guarantees payment to a seller, while choice E refers to a type of long-term debt security issued by companies or governments.

A Type of Short-Term Loan Where the Borrower Sells Its