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 ?
71) under Factor 14 with the highest factor loading of.
If factor loadings in step 3 are not equivalent for the two groups, items in each group are separately analyzed using maximum likelihood estimation (MLE) to identify the appropriate number of factors required.
Low logistics costs had the highest factor loading on cost and service quality.
Amongst six attributes grouped under Factor 1 (renamed as Market fluctuations), the first attribute, increased competition with the factor loading = 0.
Similarly, if the "old" factors had new effects--that is, if their factor loadings changed--then again the [R.
In the first factor analysis made after the above-mentioned processes, unrotated method was used to find maximum factor loadings.
The eigenvector associated with the general demand component should have positive factor loadings on all prices, and should be correlated with demand shifters such as income and team winning percentage.
Table 3 Factor Loadings for the SESQ-ENG Items Factor Item [lambda] Communality I am very interested in learning.
37 Table 4 Factor Loading of Items Active/Reflection and Sensing/intuitive Factor Loadings Scale Item 1 2 3 4 5 6 7 8 A-R 1 .
More specifically, via a multitrait-multimethod approach, we determined the convergent validity (within factor validity or testing the factor loadings of items which are supposed to load on the underlying factors), discriminant validity (between-network validity or examining the strength of correlations between latent factors/constructs) of the three measures of multiple goals as well as unwanted method effects.