Factoring allows a business to obtain immediate cash instead of waiting to collect the account receivable.

Name: Factoring allows a business to obtain immediate cash instead of waiting to collect the account receivable.
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

Factoring is a financial transaction where a company sells its accounts receivable to a third party (a factoring company) at a discount. This allows the company to receive immediate cash instead of waiting for the customers to pay their invoices.

Factoring Allows a Business to Obtain Immediate Cash Instead of Waiting