The buyer who purchases and takes ownership of another company's accounts receivable is called a:
A) Payer.
B) Pledgor.
C) Factor.
D) Payee.
E) Pledgee.

Question

Quizplus · Accepted Answer

The buyer who purchases and takes ownership of another company's accounts receivable is called a factor. Factors specialize in financing businesses by purchasing their accounts receivable at a discount and then collecting the full amount owed from the debtor. The seller of the accounts receivable is usually able to receive immediate cash and transfer the risk of non-payment to the factor.

The Buyer Who Purchases and Takes Ownership of Another Company's