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'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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