The selling of accounts receivable as a means of quickly raising cash,minimising debt collecting expenses and minimising bad debt losses is known as:

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Debt factoring is the process of selling accounts receivable to a third-party (known as a factor) at a discount, in exchange for immediate cash. This process helps businesses to quickly raise cash and minimises the time and costs associated with debt collection. The factor also takes on the risk of bad debt losses, which reduces the risk for the business selling the accounts receivable. Choice B) ageing of debtors refers to the process of categorising accounts receivable by the length of time they are overdue. Choice C) establishing a bill receivable refers to the process of creating a formal agreement between two parties for payment to be made at a later date. Choice D) discounting refers to the process of offering a customer a discount if payment is made within a specified time frame.

The Selling of Accounts Receivable as a Means of Quickly