Question

Factoring is:

Group of answer choices

A.servicing mortgage factors.

B.financing automobile purchases.

C.equipment leasing.

D.making installment loans to customers.

E.purchasing corporate accounts receivables at a discount.

Answer 1

E.purchasing corporate accounts receivables at a discount.

Factoring is a transaction between firm and third party (such as bank etc, called Factor), in which firm sells its account receivables (debtor) to factor at a discount to fulfill its current cash requirements.

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.