AIWMI Certified Credit Research Analyst Level 2 CCRA-L2 Question # 45 Topic 3 Discussion

AIWMI Certified Credit Research Analyst Level 2 CCRA-L2 Question # 45 Topic 3 Discussion

CCRA-L2 Exam Topic 3 Question 45 Discussion:
Question #: 45
Topic #: 3

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.


D.

Only B


E.

A, B and C


F.

Only C


G.

Only A and B


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