factor

(redirected from local factor)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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 ?
Anatomical, pathological and local factors may theoretically have contributed to the development of the epidural metastasis.
Any such revision, however, would only follow a review of offsetting local factors.
But local factors such as difficulties with unco-operative property owners and ``low levels of entrepreneurial expertise'' are also cited as reasons for the decline.
As part of the survey, respondents rated local factors according to their importance.
The collection is a strident call to reject the export dependency paradigm that prevailed in the 1970s and 1980s, a paradigm that, according to the authors, woefully neglected local factors in its focus on foreign demand.
There is no one correct organizational or governance structure that can account for the myriad local factors faced by each hospital system.
The report examines the local factors that determine the size of the opportunity for telco TV, including existing multi-channel services, broadband adoption and regulatory issues, and outlines strategies to be employed across a range of broadcasting environments.
Supplementary empirical evidence will be collected by analysing a number of transects and disentangling the global and local factors that influence land change decisions.
There is a need for you to urgently look into supply management of items that are driving the current round of food inflation, in particular local factors that are widening the gap between wholesale and retail prices," the FM said.
It's clear that poor results in Cardiff, Bridgend and Swansea were down to local factors.
It is easy to see why this should be so; magistrates know their patch and can judge accordingly, making allowances for local factors that would not be properly understood if cases were to be heard far away from the scene of the crime.
Telco TV: European market opportunities and operator strategies examines local factors that determine the size of the opportunity for telco TV and addresses your key questions: