When the bank advances a large percentage of the invoice price of goods and is paid on a pro-rata basis when inventory is sold this is called:

When the bank advances a large percentage of the invoice price of goods and is paid on a pro-rata basis when inventory is sold this is called:



A) a trust receipt.
B) a factoring arrangement.
C) an accounts payable loan.
D) a sale-leaseback arrangement.






Answer: A


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