factor


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Related to factor: Factor Models

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 classic literature ?
At these words the corn factor grew pale as a linen napkin.
I can't say for certain, because it all depends--well, it all depends upon a factor which is completely outside our control.
The spirit of an army is the factor which multiplied by the mass gives the resulting force.
For some time they continued through the forest--how long I could not guess for I was learning, what was later borne very forcefully to my mind, that time ceases to be a factor the moment means for measuring it cease to exist.
The business of exploring each of them would be fraught with danger; but danger was only a natural factor of each day's life--it never appalled Tarzan.
Time was a negligible factor in the equation of life--it was all the same to Tarzan if he reached the west coast in a month or a year or three years.
Then, too, there was the compelling force of the manmind exerting its powerful influence over this creature of a lower order, and, after all, it may have been this that proved the most potent factor in Tarzan's supremacy over Sheeta and the other beasts of the jungle that had from time to time fallen under his domination.
The most eager factor in the search for Prince Richard was Simon de Montfort, Earl of Leicester, whose affection for his royal nephew had always been so marked as to have been commented upon by the members of the King's household.
The lure of adventure may have been quite as powerful a factor in urging Tarzan of the Apes to undertake the journey as the lure of gold, but the lure of gold was there, too, for he had learned among civilized men something of the miracles that may be wrought by the possessor of the magic yellow metal.
It is the unexpected that upsets their stereotyped calculations--any new combination, any strange factor, any fresh variant.
And you, in turn, - or so it seems to me, - leave out the biological factor, the very stuff out of which has been spun the fabric of all the arts, the warp and the woof of all human actions and achievements.
They were howling at the very gates, and sometimes he and the Factor paused from the game to listen and laugh at the futile efforts of the wolves to get in.