Default

to fail to make payments on time

Factoring

banks or financial institutions buying receivable from the business

Pledging

the owner of the receivables borrowing cash from a lender by pledging the receivables as collateral

transfer with recourse

when the seller guarantees payment in the event accounts receivable become uncollectible

transfer without recourse

when the purchaser manages all accounts receivable collections and absorbs losses from uncollectible accounts

Factoring occurs when a factor ____ accounts receivable.

buys

Transfer without recourse involves the factor ____ the losses from uncollectible accounts.

assuming

Transfer with recourse involves the factor ____ the losses from uncollectible accounts.

avoiding