1
Default
to fail to make payments on time
2
Factoring
banks or financial institutions buying receivable from the business
3
Pledging
the owner of the receivables borrowing cash from a lender by pledging the receivables as collateral
4
transfer with recourse
when the seller guarantees payment in the event accounts receivable become uncollectible
5
transfer without recourse
when the purchaser manages all accounts receivable collections and absorbs losses from uncollectible accounts
6
Factoring occurs when a factor ____ accounts receivable.
buys
7
Transfer without recourse involves the factor ____ the losses from uncollectible accounts.
assuming
8
Transfer with recourse involves the factor ____ the losses from uncollectible accounts.
avoiding