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प्रश्न
Multiple Choice Question:
Under the factoring arrangement, the factor
विकल्प
Produces and distributes the goods or services
Makes the payment on behalf of the client
Collects the client's debt or account receivables
Transfer the goods from one place to another
MCQ
उत्तर
Factoring refers to an arrangement under which financial service providers known as ‘factors’ agree to provide certain types of services to business owners. These services are collecting bill receivables, discounting bills, providing information about the credit worthiness of clients, etc.
Hence, the correct answer is option Collects the client's debt or account receivables.
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Borrowed Funds - Trade Credit
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