A factor is used to: Group of answer choices apply for credit. increase sales. accelerate cash receipts. borrow money.

The correct answer to the question is "accelerate cash receipts."

Explanation:

A factor is a financial intermediary that purchases receivables from a business to provide immediate cash. By selling their accounts receivable to a factor, businesses can accelerate the cash flow from their sales, allowing them to access funds more quickly than if they waited for customers to pay their invoices. This practice helps in managing working capital and finances effectively.

Factors charge a fee for their services, but the primary function they serve is to enhance cash flow by reducing the time it takes to collect outstanding debts. This option is crucial for businesses looking to maintain liquidity and invest in operations without delay.