Answer: Debt Factoring
Explanation: Debt factoring is when a company sells it's outstanding accounts receiveable to a financial organization who will then collect this debt on the company's behalf. This financial organization will then pay the company the portion of the total debt it is able to collect, minus it's portion it charged the company as a fee.
This service usually occurs on difficult outstanding debtors, and the company is aware that it will not receive the total debt that it sells to the financial organisation, i.e. certain debt will be written off as bad debt.
