Question
In the context of a Trade Receivables Discounting System
(TReDS), which of the following participants is responsible for accepting the factoring unit (FU) before it is discounted by a financier?Solution
In TReDS, the buyer is responsible for accepting the Factoring Unit (FU) before it is discounted by the financier. The FU represents a confirmed obligation from the buyer, and once accepted, it is used for financing or discounting by the financier.
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