Unit quiz: Receivables, household exposure and consolidation

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5 questions · 80% to pass · no timer. This quiz checks the lessons in this unit. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

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Question 1

Tide has an acknowledged invoice from an established customer. A factor may advance a portion, hold a reserve and collect from the customer. A disputed or unearned invoice cannot be treated as equivalent to an accepted receivable.

Owner: “Factoring means I never worry about customer nonpayment?”We must review exactly which credit risks, disputes and recourse obligations the agreement covers.Correct. Selling any invoice removes every possible liability.

Question 2

Harbor’s owner asks about using a HELOC to rescue payroll. The business might receive cash, but the owner introduces household housing risk. Do not conceal that transfer of risk behind “lower rate.”

Owner: “It is just another business line, right?”Yes. Using the cash for business removes personal home risk.No. A HELOC puts your home at risk and has its own draw, repayment and rate terms.

Question 3

A fictional owner identifies a payment reported late despite a dated receipt. They can document and dispute the error. A different owner has an accurate recent delinquency; calling it identity theft would be false.

Owner: “Can you erase accurate negatives and guarantee my score?”No. We can discuss checking reports for genuine errors, but cannot promise deletion, a score or approval.Yes. Use a new credit identity and dispute everything.

Question 4

Harbor compares keeping its existing schedule against a longer replacement loan. The replacement reduces weekly strain but extends obligations. Both total outlay and the lowest cash balance matter.

Owner: “Lower payments mean we save money?”Yes. Lower periodic payments prove lower overall cost.Not necessarily; compare remaining old payments with all new payments, fees and the payoff process.

Question 5

An owner hears “one smaller payment,” but old providers still debit the bank account and the new funder sends conditional weekly deposits. This can be layered funding rather than a payoff. Ask what happens if a deposit is delayed or terminated.

Owner: “Reverse consolidation erases my old advances on day one?”Do not assume that. We need proof of payoff or a schedule showing every surviving obligation and new disbursement.Yes. The name guarantees that old contracts disappear.

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