One Major Advantage of Factoring Accounts Receivable Is That the Selling

question 88

True/False

One major advantage of factoring accounts receivable is that the selling firm receives money from its accounts receivable faster than if it waited until the customers paid.

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Definitions:

Optimal Amount

The most efficient, beneficial, or effective quantity of a resource, investment, or input to achieve a specific objective.

5 C's of Credit

The 5 C's of Credit refer to the five key factors that lenders consider when evaluating a borrower's creditworthiness: character, capacity, capital, collateral, and conditions.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default.

Credit Obligations

The responsibilities to repay debt incurred through borrowing or credit agreements.