'Factoring' Is One Method of Using Accounts Receivable as Security

Multiple Choice

'Factoring' is one method of using accounts receivable as security over a loan.This occurs when:

A) a financial institution loans cash to an entity by acquiring 70 - 75% of an entity's accounts receivable.
B) a financial institution loans cash to an entity with the entity guaranteeing the money it receives from specific debtors will be used to repay the loan.
C) a financial institution loans cash to an entity by 'buying' the accounts receivable and obtaining the right to collect the accounts directly from the entity's debtors.
D) None of these options is correct.