factor

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Factor

A financial institution that buys a firm's accounts receivable and collects the accounts.

Factor

A third party that buys a firm's accounts receivable. If a firm is not confident in its ability to collect on its credit sales, it may sell the right to receive payment to the factor at a discount. The factor then assumes the credit risk associated with the accounts receivable. This provides the firm immediate access to working capital, which is important, especially if the firm has a cash flow problem. The price of factoring is determined by the creditworthiness of the firm's customer, not of the firm itself. It is also known as accounts receivable financing.

factor

A firm that purchases accounts receivable from another firm at a discount. The purchasing firm then attempts to collect the receivables.

factor

To sell accounts receivable to another party at a discount from face value. Thus, a firm in need of cash to pay down short-term debt may decide to factor its accounts receivable to another firm.

factor

  1. a firm that purchases TRADE DEBTS from client firms. See FACTORING.
  2. a firm that buys in bulk and performs a WHOLESALING function.
  3. an input (for example raw material, labour, capital) which is used to produce a good or provide a service.

factor

  1. 1a FACTOR INPUT that is used in production (see NATURAL RESOURCES, LABOUR, CAPITAL).
  2. a business that buys in bulk and performs a WHOLESALING function.
  3. a business that buys trade debts from client firms (at some agreed price below the nominal value of the debts) and then arranges to recover them for itself. See FACTOR MARKET, FACTORING.
References in periodicals archive ?
Through the MPF Government MBS product, the MPF Program purchases 30-year and 15-year fixed-rate mortgage loans originated by participating Federal Home Loan Bank members that are insured or guaranteed by the following government agencies: FHA, VA, and USDA through its RHS Section 502 loan program.
The ratio ranged from -7 to +17 during the current cycle of strong apartment demand that began at the start of 2010, MPF reports.
He said MPF has a "good record" opposing excessive salaries and bonuses but added: "That is not to say we can't do better.
Deciding that its existing coding equipment was unable to provide the required versatility, MPF looked at other options on the market, with an emphasis on ease of use and flexibility.
Another product showcased at Pack Expo was Multi-Fill's Precision Volume Adjustment option for MPF fillers.
One of the hypotheses raised is that the MPF distribution influences the classification of the different groups of municipalities when serving as an income redistribution mechanism.
Left, Ged Scott, Tod Schrader, Andy George, John Kartz and Ursula Hammond from the Birmingham Post and Continental Airlines Pictures, LORETTA BRENNAN' The winning MPF team: Rob Day, Jeremy McGinn, Gary Shingler and Gary Wright' David Beech, David Garrigan, Neil Mackay and Chris Arkwell of Advantage Business Angels' Above, Allen Terry, Roy Tricker and Robbie Hanna' right, Kirsty Paterson, Andy Skinner and Pip Elsen of Asap events' Mick Donavan, Des Buckley, Sid Muir (all Allied Irish) and Jeremy Cope (Bentley Jennison)' Kevin Newman, Mary O'Neil, Steve Wilkins and Val O'Neil from the Allied Irish South Birmingham Office
Richard Burrell, of MPF, stresses the fund must be seen as a long-haul investment, paying regular, near-guaranteed income.
MPF, 30 January, 6, 12, 13 February 1935, PCB 82 Albert Victor Bradford Entwistle, appointed August 1920.
A cornerstone of implementing Sea Basing is the Maritime Pre-positioning Force (MPF) and its future version, the MPF (Future).