A Form of Asset-Based Lending That Advances Cash to a Business

question 2

Multiple Choice

A form of asset-based lending that advances cash to a business in exchange for its receivables is called

• A)a line of credit.
• B)leasing.
• C) a bridge loan.
• D) factoring.

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Definitions:

Credit Normal

The usual terms or conditions under which credit is extended to customers, including payment due dates and interest rates.

Sales Slip

A document that records the details of a transaction made between a buyer and a seller.

Cash Register Tape

A paper roll or digital record used in cash registers to record transactions made during a business day.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities.