If invoice discounting is not confidential in nature, the customers of the client are advised to make…
In 'Agency Factoring', the arrangement is disclosed (not confidential) so customers are notified to make payments directly to the factor, and the factor provides financing…
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If invoice discounting is not confidential in nature, the customers of the client are advised to make payment directly to the factor. This facility, when offered with a non-recourse, is known as:
Answer and explanation
Correct answer A
In 'Agency Factoring', the arrangement is disclosed (not confidential) so customers are notified to make payments directly to the factor, and the factor provides financing and non-recourse credit protection (bad-debt protection), while the client retains responsibility for sales ledger administration and collection as an agent of the factor.
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UGC NET Commerce