Question

113: What can be used to convert credit sales into
liquidity/ immediate cash?
Systematic disbursements
Factoring
Cash management
None of the above.
Save & Next
Save & Back​

Answer 1

Answer:

factoring is the write answers

Answer 2

Factoring can be used to convert credit sales into  liquidity/ immediate cash

• Factoring is a short-term funding obtained by the direct sale or transfer to a third party of the account receivable by an enterprise at a discount or in return for immediate cash.
• By factoring, an enterprise will typically collect necessary cash directly for receivable accounts instead of typically waiting 60 to 90 days or more for the potential clients to promptly pay.  

• The third party, which represents a factoring agency, audits the enterprise's receivable accounts to accurately determine their collectability.