What financial method involves selling accounts receivable at a discounted price?

The correct answer is factoring, which is a financial method where a business sells its accounts receivable (money owed by customers) to a third party, known as a factor, at a discounted price. This allows the business to receive immediate cash rather than waiting for the accounts to be paid, which can improve cash flow and reduce the risk of bad debts. This method is particularly beneficial for businesses that need quick access to funds for operations or to seize new opportunities.

Leasing, on the other hand, involves acquiring the use of an asset by making regular payments over time but does not involve the sale of accounts receivable. Equity financing refers to raising capital by selling shares of the company, which involves offering ownership stakes to investors rather than selling debts. Debt financing is acquiring funds through borrowing, typically involving loans or issuing bonds, and does not relate to selling receivables. Thus, factoring stands out as the method specifically focused on selling accounts receivable for cash.