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 classic literature ?
You spoke yourself of the human frailty that prevented one from taking all the factors into consideration.
In the meantime, he hoped, an idea adequate to the possibilities of the various factors at hand would occur to him.
there are two factors, namely, the nature of the organism, and the nature of the conditions.
In actual fact, there are doubtless various factors that concur in giving us the feeling of greater or less remoteness in some remembered event.
It is true that there were other factors in this pleasing disappointment.
It would seem that a schoolgirl in these advanced days would know what to do when she found that a man worth millions was in love with her; yet there were factors in the situation which gave Claire pause.
More quickly she perfected herself in jungle craft, so that the time soon came when she was an important factor in the chase, watching while the others slept, or helping them to trace the spoor of whatever prey they might be stalking.
Joy appeared to have passed away as a factor of life, and this creative impulse had nothing to take its place.
Frankland, of Lafter Hall, who is also an unknown factor, and there are one or two other neighbours.
But I fear I do not " The sudden vision of his passion for herself as a factor in this result so distressed her that, beginning with one slow tear, and then following with another, she wept outright.
It occurred to me, however, that she had overlooked one little factor in her revenge, and so, without any intent to add to her discomfiture, but rather to permit her to rearrange her plans along more practical lines, I pointed to the nearest port-hole.
Perhaps; but without one other factor we could have achieved nothing.