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 ?
To enable robust and reliable computer modelling of the effect of EGR, this article provides a comparison of how well different correction factor models match measurements obtained from an engine.
We calculated correction factors (CF) for each forage class during each season as:
[C.sub.6] - correction factor for thread tolerances [-]
Average Velocity Correction Factors. Vehicle operating conditions in different provinces and cities in China vary significantly owing to the different landforms, population densities, and road conditions of various regions.
The number of centroid updates that are performed over the centroids respect the same rule as for the first dataset: the number of the centroid updates decreases if the correction factor increases.
If the corrected number of infant deaths was greater than or equal to the expected minimum number of deaths among children under one year old ([D.sub.minexp]), the correction factor obtained was considered sufficient.
When the oblique crack has different angles and relative depths, the geometric correction factors are calculated for a unilateral oblique cracked beam subjected to a pure bending moment, and the finite element method (FEM) analysis software ABAQUS is used to calculate these factors.
The application of a persistence-rate correction factor incorporating species, road type, position and traffic can reduce potential biases, but requires road type and position to be recorded during surveys and estimates of traffic to be ascertained.
However, this over-reading is predictable and for a known liquid flow rate an ISO-published correction factor can correct the gas flow rate prediction to 2% at 95% confidence.
In order for linear regression to be performed on Equation 1, which is nonlinear in the unknown coefficients, [f.sub.cap, m] was set equal to 1 and then the temperature correction factor coefficients for capacity in Equation 3 were found through linear regression using only data points where [[??].sub.a, in] was equal to [[??].sub.a, in, max].
According to the simulation results, we have introduced a correction factor k related with the magnitude of interference, the hollow degrees of the shaft, and the moment load Parameters.