The process that transfers the responsibility for collecting accounts receivables from a firm to a bank in exchange for a percent of the accounts receivables value is referred to as:

A) Factoring.
B) Issuing trade credit.
C) Field warehousing.
D) Trust receipting.
E) An assignment.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to obtain immediate cash.

Accounts Receivables

Liabilities of customers towards a business for commodities or assistance that have been executed or utilized, waiting to be paid.

Collecting Accounts

The process of managing the collection of revenues or receivables from clients or customers.