Factoring accounts receivable is done:
A)on a default basis
B)on a consignment basis
C)on an interest only basis
D)on a non-recourse basis

Question

Quizplus · Accepted Answer

Factoring accounts receivable on a non-recourse basis means that the factor assumes the risk of collecting the debts, ensuring that the company selling the accounts receivable is not responsible if the debts cannot be collected. This is typically the most advantageous form of factoring for the selling company, as it limits their risk exposure.

Factoring Accounts Receivable Is Done