'Factoring' is one method of using accounts receivable as security over a loan. This occurs...
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Accounting
'Factoring' is one method of using accounts receivable as security over a loan. This occurs when:
a) A financial institution loans cash to an entity by acquiring 70-75% of an entity's accounts receivables
b) None of these options is correct.
c) a financial institution loans cash to an entity with the entity guaranteeing the money it receives from specific debtors will be used to repay the loan.
d) a financial institution loans cash to an entity by 'buying' the accounts receivable and obtaining the right to collect the accounts directly from the entity's debtors.
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