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AIWMI CCRA-L2 Exam - Topic 1 Question 116 Discussion

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 saleB: 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.
D) Only A and B
A) Only B
B) A, B and C
C) Only C

AIWMI CCRA-L2 Exam - 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.

Show Suggested Answer Hide Answer
Suggested Answer: D

by Tawny at Aug 12, 2025, 09:55 PM

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Venita
5 months ago
Sounds too good to be true, honestly.
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Wei
5 months ago
Yep, A, B, and C are all part of it!
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Marguerita
6 months ago
Wait, are sellers really paying upfront costs?
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Mattie
6 months ago
A factor pays a percentage upfront.
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Galen
7 months ago
Totally agree with that!
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Floyd
7 months ago
I definitely recall that the seller pays costs upfront, so I think B is not the only part that matters here.
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Joseph
7 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.
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Audria
7 months ago
I think the correct answer includes A, B, and C since all parts describe the flow of money in factoring.
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Kenneth
8 months ago
I remember studying that the factor pays a percentage upfront, but I'm not sure if all costs are paid upfront too.
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Cory
8 months ago
I'm confident I can figure this out. Analyzing the details and options is the key here.
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William
8 months ago
The wording of this question is a bit tricky, I'll need to think it through step-by-step.
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Kasandra
8 months ago
Okay, I've got it now. I just need to identify which of the given options correctly describes the flow.
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Dudley
8 months ago
Hmm, I'm a bit confused about the flow of money here. Let me re-read the details carefully.
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Maybelle
8 months ago
This question seems straightforward, I think I can tackle it easily.
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Stephen
9 months 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
9 months ago
I believe the answer is D, as only A and B are mentioned in the flow of money
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Ammie
9 months 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
9 months 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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Tamekia
5 months ago
Can't argue with that, B is the way to go!
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Brinda
6 months ago
Yeah, all steps are included in B.
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Chauncey
6 months ago
I agree, B covers everything.
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Carlee
6 months ago
Definitely, B is the complete answer.
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Troy
10 months ago
I agree with Tamesha, because all three options are mentioned in the question
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Tamesha
10 months ago
I think the answer is B
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Herman
10 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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