The services provided by an accounts receivable factor to the borrower may include:
A)performing credit checks on potential customers.
B)collecting cash from customers.
C)assuming the bad debt risk when customers of factored accounts do not pay.
D)All of the above

Question

Quizplus · Accepted Answer

An accounts receivable factor typically provides a range of services to the borrower, which may include performing credit checks on potential customers, collecting cash from customers, and assuming the bad debt risk when customers of factored accounts do not pay. Therefore, all of the choices provided are correct.

The Services Provided by an Accounts Receivable Factor to the Borrower