MNCs can use ____ to sell their existing accounts receivable as a means of obtaining cash.

Question

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Factoring involves selling accounts receivable to a third-party at a discount in order to obtain cash quickly, which can be beneficial for MNCs in improving cash flow and working capital management. A bill of lading is a document used in transportations, a banker's acceptance is a financial instrument used in international trade, and a letter of credit is a guarantee of payment used in import/export transactions, but none of these options are directly related to selling accounts receivable.

MNCs Can Use ____ to Sell Their Existing Accounts Receivable