Banking · MSME Financing
Read the following statements carefully: Statement 1: In invoice factoring, MSMEs sell their invoices to a third-party company, which then collects the payments from the customers. Statement 2: In invoice discounting, the business sells its invoices to a third-party company and relinquishes control over the payment collection process.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both statements are incorrect
- 2Both statements are correct
- 3Only Statement 2 is correct
- 4Only Statement 1 is correct✓
Correct answer
Only Statement 1 is correct
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