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