Multiple choice

The process of maintenance of account books, discounting of bills and collection of bills on due date by a person other than the seller is called

  1. securitization

  2. factoring

  3. forfeiting

  4. take out finance

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Factoring is a financial transaction and a type of debtor finance in which a seller sells its accounts receivable to a third party in which the whole responsibility passes to the factor. This process is called Factoring.