If a company sells its receivable to another party to raise funds, it is known as?

Option (b) >>>>>>>>>>>>>  Factoring

B) Factoring – It is a type of debt finance in which a business sells its accounts receivables (i.e., invoices) to a third party (called a factor) at a discount. This practice is common in International Trade Finance by Exporters who wish to sell their receivables.

B. Factoring

(Off-Balance Sheet Financing)

b

b- Factoring

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b. factoring - rightly by experts

Selling its receivables to another party called as Factorizing. Companies do so because they need liquidity in order to meet their day to day activity. although company does incur  some losses in practicing this.

b - Factoring

The answer in (D) Factoring.