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 ?
The other items with weak standardized factor loadings (SFL) were more likely the result of an item in the indicator set not having a close enough relationship with the underlying construct rather than the set requiring formative modeling.
Moreover, NES dimensionality may be contested, since Jarvis and Petty (1996) reported that NES is unidimensional, but presented the exploratory factor loading with two dimensions and a scree plot figure indicating three dimensions.
Factor loadings for the 33-item Emotional Intelligence Scale for a single-factor and 6-factor model.
Delinquency and substance use had high factor loadings for both male and female participants, but the factor loading for sexual behavior was much larger for male than for female participants, whereas the factor loading for self-destructive behavior was much larger for female than for male participants.
From the real pricing kernel parameters given in (7), the price of risk for volatility is related to the factor loading on the level of volatility by Because 1 - [beta] [[PHI].
40 on at least one factor concurrent with the suggestions of Thorndike (1978) (b) for those items with factor loadings exceeding .
From the PCA we yield the factor loading matrix that describes the influence of PCs on the particular feature components and vice versa.
Similar results were seen in Callahan and Wolinsky (1994), who showed different factor loadings for men and women.
Managers communicating with employees verbally resulted in a factor loading of 0.
8608 Table 3 Target Country's Cost Indicators--Factor Loadings and t-ratios Target Country's Cost Indicators Factor Loading t-ratio (Robust) Tariff barriers Fixed 24.
It can be seen that the factor loading for each parameters against each parameters is significant enough to set under any of the factor.