Factoring is:A model that estimates market risks and credit risks by factoring market conditions that may cause an entity to default on their debts and go bankrupt.The sale of accounts payable at a discount to an intermediary who accepts to advance funds in exchange for the right to collect the payables.A type of insurance that offers protection against the non-payment of receivables. It is typically used by sellers involved with exports (international sales).A derivative designed to mitigate the credit risk of a reference entity, in accordance with a notional amount. The buyer pays the seller a fee for transferring credit risk.None of the above