The selling of accounts receivable as a means of quickly raising cash, minimising debt collecting expenses and minimising bad debt losses is known as:

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Debt factoring involves selling accounts receivables to a third-party at a discounted price in exchange for immediate cash. This helps the company raise quick cash, reduces debt collecting expenses and minimizes bad debt losses. Ageing of debtors refers to analyzing the age of outstanding debts, debt diversion is not a recognized term in finance, and transfer pricing relates to the pricing of goods and services between related entities within a company.

The Selling of Accounts Receivable as a Means of Quickly