Question

Which is not a service of a factor?

• A. Administrating Sales Ledger
• B. Advancing against Credit Sales
• C. Assuming bad Debt losses
• D. None of the above

Answer 1

The correct option is D None of the above

Factoring is a financial arrangement in which organization sells its debtors to a third party which is known as factor at a discount.

Recourse factoring is generally followed by most of the factors in which losses on account of bad debt is not taken up by the factor.

Factors are not at all involved in administrating sales ledger, advancing against credit sales etc.