Factoring is

A mathematical procedure frequently used in accounting

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Done by people called fractioners

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Simplified method developed for counting inventory

No worries! We‘ve got your back. Try BYJU‘S free classes today!

A way companies can get cash quickly

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
A way companies can get cash quickly

Explanation for correct option
Factoring :
Factoring is a type of finance in which a business would sell its accounts receivable (invoices) to a third party to meet its short-term liquidity needs.
Under the transaction between both parties, the factor would pay the amount due on the invoices minus its commission or fees.
Hence option(D) i.e. A way companies can get cash quickly is correct.

Suggest Corrections