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Under an advance factoring contract, following flow of money takes place:
A: Factor pays a percentage of the invoice face value to the seller at the time of sale
B: The remainder of the purchase price is held by factor until the payment by the account debtor is made.
C: The cost associated with the transaction is paid upfront by the seller to the factoring agent.
Suggested Answer: D
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25 comments · newest first
VE
Venita
10 months ago
Sounds too good to be true, honestly.
WE
Wei
10 months ago
Yep, A, B, and C are all part of it!
MA
Marguerita
10 months ago
Wait, are sellers really paying upfront costs?
MA
Mattie
11 months ago
A factor pays a percentage upfront.
GA
Galen
11 months ago
Totally agree with that!
FL
Floyd
11 months ago
I definitely recall that the seller pays costs upfront, so I think B is not the only part that matters here.
JO
Joseph
12 months ago
I practiced a similar question, and I feel like only A and B are essential to the transaction, but I could be wrong.
AU
Audria
12 months ago
I think the correct answer includes A, B, and C since all parts describe the flow of money in factoring.
KE
Kenneth
1 year ago
I remember studying that the factor pays a percentage upfront, but I'm not sure if all costs are paid upfront too.
CO
Cory
1 year ago
I'm confident I can figure this out. Analyzing the details and options is the key here.
WI
William
1 year ago
The wording of this question is a bit tricky, I'll need to think it through step-by-step.
KA
Kasandra
1 year ago
Okay, I've got it now. I just need to identify which of the given options correctly describes the flow.
DU
Dudley
1 year ago
Hmm, I'm a bit confused about the flow of money here. Let me re-read the details carefully.
MA
Maybelle
1 year ago
This question seems straightforward, I think I can tackle it easily.
ST
Stephen
1 year ago
D seems tempting, but B covers all the bases. Can't go wrong with the full description of the advance factoring flow.
MA
Marguerita
1 year ago
I believe the answer is D, as only A and B are mentioned in the flow of money
AM
Ammie
1 year ago
Haha, this is a no-brainer. Of course it's B - anyone who's been in factoring for more than a day would know that's how it works. Easy peasy!
EM
Emily
1 year ago
B is definitely the right answer. The question clearly states all three steps in the process, so the full option B has to be the correct one.
TA
Tamekia
10 months ago
Can't argue with that, B is the way to go!
BR
Brinda
10 months ago
Yeah, all steps are included in B.
CH
Chauncey
11 months ago
I agree, B covers everything.
CA
Carlee
11 months ago
Definitely, B is the complete answer.
TR
Troy
1 year ago
I agree with Tamesha, because all three options are mentioned in the question
TA
Tamesha
1 year ago
I think the answer is B
HE
Herman
1 year ago
I think the correct answer is B. The flow of money in an advance factoring contract includes all three elements - the factor paying a percentage upfront, the remainder being held until the account debtor pays, and the cost being paid upfront by the seller.