1. The interest rate on_________________ is less than the interest rate on a bank loan. 2. The outright sale of accounts receivable to a third party is called _______________. 3. In a(n)...

1. The interest rate on_________________ is less than the interest rate on a bank loan.

2. The outright sale of accounts receivable to a third party is called _______________.

3. In a(n) _________________ accounts receivable are transferred to a third party with recourse.

4. In the case of inventory financing, a(n)_________________ lien applies to the aggregate inventory rather than the components.

5. In a(n)________________ loan, the creditor has title to goods but releases them to the borrower to sell on the creditor’s behalf.