If a business is in need of working capital, one option is to use a(n) that will buy the company's account receivables and then

A factor company

Explanation:

A factor company is a finance company that specializes in purchasing company's accounts receivable,then goes ahead to collect the balances from the customers for a fee.

A factor company sometimes does this with a recourse to the company whose receivable has been factored or without a recourse.

With a recourse means that any accounts receivable balance uncollected would be transferred to the original company while without a recourse is the opposite situation

Factoring company

Explanation:

factoring company

Explanation:

Factoring companies purchase your company's invoices (account receivables). When they do that, your company promptly receives a cash advance, instead of waiting for the usual 60, 90 day period to receive the full payment amount. Afterward, the factoring company collects the payment from your clients.

All of that is done for a fee to the factoring company (deducted from the full payment amount) and mostly with clients with whom it is normal to have longer payment periods. Factoring is an essential way to get bigger working capital.