Which of the following is NOT a method for lenders to control pledged inventory?
A) Factoring
B) Blanket inventory liens
C) Trust receipts
D) Warehousing

Question

Quizplus · Accepted Answer

Factoring involves selling accounts receivable to a third-party and does not involve inventory as collateral. The other three options (B, C, and D) are all methods for lenders to control pledged inventory. Blanket inventory liens allow the lender to place a lien on all of the borrower's inventory, trust receipts give the lender temporary ownership of the inventory until the loan is repaid, and warehousing involves the lender physically storing the inventory until the loan is repaid.

Which of the Following Is NOT a Method for Lenders