passwella.
Menu

JAMB Commerce 1995 Question 14

Question 14

Business Finance

Factoring is a trade debt term used when the factor buys all the trade debts of the

  1. A.importers
  2. B.exporters
  3. C.nation
  4. D.customers.
Show the answer and explanation

Answer: B (exporters)

Explanation

A factor buys a seller's (e.g. an exporter's) trade debts for cash at a discount and then collects the debts itself.