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

The correct answer is B. Factoring.

Factoring is a financial transaction in which a company sells its accounts receivable to a third party, known as a factor, at a discount. The factor then collects the receivables from the customers and pays the company the net amount, less the discount and any fees.

Factoring can be a useful source of short-term financing for companies that have a lot of accounts receivable. It can also help companies improve their cash flow and reduce their risk of non-payment.

Securitization is the process of converting illiquid assets into liquid securities. This is done by bundling the assets

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