Factorizing is a trade debt term used when the agent buys all the trade debts...
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POST UTME OAU
Factorizing is a trade debt term used when the agent buys all the trade debts of the
- A) Importer
- B) Exporter
- C) Nations
- D) customers
Correct Answer: D) customers
Explanation
This question is asking about the meaning of the term factorizing in trade debt. Factorizing refers to a situation where an agent buys all the trade debts of a group of customers. Trade debts are the amount of money that one business owes to another for goods or services received. In this case, the agent is buying the trade debts of the customers.Out of the options given, the correct answer is option D - customers. This means that the agent is buying the trade debts of the customers, not the importer, exporter, or nations. It is important to note that factorizing is a common practice in trade finance where businesses can access cash by selling their unpaid invoices to a third party at a discount.
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