One that lends money to another taking back a negotiable instrument as security is a(n) _____.

Question

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This describes a factor, which is a financial institution that provides financing to businesses by purchasing their accounts receivable (invoices) at a discount. The business receives immediate cash, while the factor takes on the responsibility of collecting payment from the customer. The negotiable instrument is the invoice or accounts receivable that serves as security for the financing. A is incorrect because an obligee is someone to whom an obligation is owed. C is incorrect because a carrier is a company that transports goods. D and E are not relevant to the question.

One That Lends Money to Another Taking Back a Negotiable