[blank] is a financial institution that purchases accounts receivable from firms.
A)Float
B)Line of credit
C)Commercial paper
D)Factor

Question

Quizplus · Accepted Answer

A factor is a financial institution that purchases accounts receivable (or invoices) from firms at a discounted rate and then collects payment from the customers who owe the money. This can help provide immediate cash flow for the firm selling the receivables.

[Blank] Is a Financial Institution That Purchases Accounts Receivable from Firms