In which of the following secured loans can inventory NOT be used as collateral?

Question

Quizplus · Accepted Answer

Factoring is the only secured loan option listed where inventory cannot be used as collateral. In factoring, a company sells its accounts receivable to a third party, who then collects on those receivables. Inventory is not used as collateral in this arrangement. A public or private warehousing arrangement and a trust receipt all involve the use of inventory as collateral.

In Which of the Following Secured Loans Can Inventory NOT