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 ?
Correction Factor to Account Heat Loss from Sides of Buildings
81 by a correction factor calculated as follows: 313/655 = 1/x, where x = 2.
There is as yet no published USM wet gas correction factor.
The relation among width milling rate, height milling rate and correction factor is shown in Fig.
ref] temperature of the panel at STC and K thermal correction factor (Ohm/[degrees]C), [R.
a, in, max], the airflow correction factor coefficients [X.
This again highlights the danger of using CCT-based correction factors that ignore the effect of corneal biomechanics; if the cornea were thick but soft, a CCT-based correction factor would result in a corrected IOP that is further from the true IOP than the GAT IOP was.
The correction factor as a function of relative humidity, for temperatures of 21[degrees]C and 24[degrees]C and for pressures of 98.
It was suggested that the European Community for Steel and Coal (ECSC) prediction equations, derived from the study of Europeans, should be used as a norm, and that the use of a correction factor for adjusting predicted values that was sometimes applied in the past be discouraged.
i,] number of individuals in the sample) was calculated by applying a species-specific (or closest proxy) correction factor to account for otolith loss during digestion.
To reduce the effect of friction on the test has been applied the Bulge Correction Factor Method (BCFM) (Fereshteh-Saniee & Fatehi-Sichani, 2006).
6 For a k-irreducible partition [sigma], the weighted correction factor is 1 if and only if [sigma] splits into [[sigma].