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In a private label financing arrangement, the seller does which of the following?
Suggested Answer: D
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15 comments · newest first
NI
Nidia
2 months ago
I feel like option A is more about managing risk effectively.
GE
Gerri
2 months ago
True, but they still get cash flow upfront with option C.
AL
Alva
2 months ago
But if they lose authority to decide on credit, that’s risky!
ON
Onita
3 months ago
Option C makes sense. It’s a straightforward benefit for the seller.
AL
Alona
3 months ago
I disagree, I believe they receive the full face value of the sale.
LI
Lisha
3 months ago
I think the seller commits funds to finance accounts receivable.
SH
Shawnta
3 months ago
B) is interesting, but not always the case!
SE
Serina
3 months ago
D) is definitely a downside, losing control over credit decisions.
WI
Willard
4 months ago
Wait, C) sounds too good to be true.
LE
Lennie
5 months ago
Totally agree, that's how it works!
KA
Kattie
5 months ago
A) is correct, they commit funds to finance receivables.
NA
Nadine
6 months ago
I vaguely recall something about the seller losing authority in credit decisions, so option D might be relevant, but I need to double-check that.
BL
Blair
6 months ago
I feel like the seller usually receives the full face value of the sale, which makes me think option C could be correct.
AN
Annette
6 months ago
I remember a practice question where the seller had to decide on customer credit, so I'm leaning towards option D, but it feels a bit tricky.
MI
Micah
6 months ago
I think the seller commits funds to finance accounts receivable, but I'm not entirely sure if that's the right choice.