Question

A company sells receivables to a factor without recourse. Later, the buyer defaults and the factor approaches the seller for recovery. The seller refuses liability citing contract terms. Who bears the credit risk?

A Seller always
B Buyer only
C Factor
D Bank financing the factor
E Shared equally
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)