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AIWMI Exam CCRA-L2 Topic 1 Question 116 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 116
Topic #: 1
[All CCRA-L2 Questions]

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.

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Suggested Answer: D

by Tawny at Aug 12, 2025, 10:55 PM

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Maybelle
13 hours ago
This question seems straightforward, I think I can tackle it easily.
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Ammie
9 days 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!
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Emily
14 days 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.
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Stephen
14 days ago
D seems tempting, but B covers all the bases. Can't go wrong with the full description of the advance factoring flow.
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Marguerita
16 days ago
I believe the answer is D, as only A and B are mentioned in the flow of money
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Troy
2 months ago
I agree with Tamesha, because all three options are mentioned in the question
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Tamesha
2 months ago
I think the answer is B
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Herman
2 months 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.
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