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While a loan must be repaid, factoring is the selling of _____ to a finance company who then assumes responsibility for collecting the accounts.

Sagot :

The correct answer is accounts receivable.

While a loan must be repaid, factoring is the selling of accounts receivable to a finance company who then assumes responsibility for collecting the accounts.

What is factoring?

  • Factoring is concerned to a kind of financial transaction. It is also a type of a debtor finance.
  • In factoring a business sells it accounts receivable to another party at a lower cost or at a discount.
  • It is usually used in international trade finance.
  • It is also known as invoice factoring, accounts receivable factoring, or also as receivable financing.
  • In factoring there are three different parties directly involved.
  • The whole process highly confidential.

To learn more about accounts visit: https://brainly.com/question/17373928?

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