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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

factor

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

factor

1a FACTOR INPUT that is used in production (see NATURAL RESOURCES, LABOUR, CAPITAL).
a business that buys in bulk and performs a WHOLESALING function.
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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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References in periodicals archive

Ignore factor XII. Low factor XII levels can be found in samples that have been frozen and thawed, and factor XII deficiency is not a hemorrhagic disorder.

Factor XII: What does it contribute to our understanding of the physiology and pathophysiology of hemostasis & thrombosis.

A 77-year-old man with a prolonged activated partial thromboplastin time

Structural gene encoding human factor XII is located at 5q33-qter.

Radioimmunoassay of human Hageman factor (factor XII).

Association of FXII 5'UTR 46C>T polymorphism with FXII activity and risk of thrombotic disease/FXII 5'UTR 46C>T polimorfizmi ile FXII aktivitesi ve trombotik hastalik riskinin iliskisi

Activated factor XII converts prekallikrein into kallikrein, and the latter cleaves high-molecular-weight kininogen into bradykinin, which mediates many of the biologic effects of this system.

In some families, individuals with HAE with normal C1-INH function have a gain-of-function mutation in coagulation factor XII that may result in enhanced generation of bradykinin.

A girl with severe hand swelling and abdominal cramps

In addition to ([[beta].sub.2]-GPI and prothrombin, (activated) protein C (12), protein S (12), annexin V (13), high- and low-molecular weight kininogens (14), factor XII (15), thrombomodulin (16), and tissue-type plasminogen activator (17) have been reported to be antigenic targets of aPL antibodies.

Prevalence of different anti-phospholipid antibodies in systemic lupus erythematosus and their relationship with the antiphospholipid syndrome

Blood coagulation factor XII (FXII; Hageman factor) is a serine protease.

Rapid factor XII (46C [right arrow] T) genotyping by fluorescence resonance energy transfer in patients with coronary artery disease or thrombophilia