Multiple choice

In case of import factoring, the functions like evaluation of buyers, collection of money on time is the job of

  1. export factor

  2. import factor

  3. domestic factor

  4. Any of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The export factor selects an appropriate import factor to act on the seller's behalf overseas. With the export factor's supervision, the import factor overseas investigates the credit standing of any local customer to whom the seller wishes to sell goods. The import factor will manage the seller's collections and cover the credit risk.

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