factor


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Related to factor: Factor Models

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 ?
"There's also the possibility that, through crowding and more money flowing into a given factor, its premium could erode," observes Jon Pliner, head of delegated portfolio management at consultant Willis Towers Watson.
According to the company, the cobas Factor II and Factor V Test is a multiplex test, with flexible reporting of both Factor II and Factor V gene mutations.
"I came to the realization that even the most sophisticated of these users have a hard time wrapping their head around factors, and how you build factor portfolios, and what happens if you have more of this factor or that factor?" he told ThinkAdvisor.
The factoring contract includes an exclusivity clause which implies that the adherent is obliged to present only to the factor all invoices including receivables on debtors and the factor can accept only those that show a high degree of certainty about their payment at maturity by debtors.
For confirmation mixing studies with 50:50 mixture of patient plasma and specific factor deficient plasma and factor assays were done.
For example, one variation involves the factor advancing about 80 per cent of the invoice amount at the outset.
Factor in China," Xu Jiang, the assistant general manager of global trade services for the Bank of China, the fifth largest bank in the world, pointed out additional benefits of factoring, including mitigating loss of value due to exchange rate fluctuations and balance sheet trimming.
(b) International factoring--this operation is based on an international trade contract; there are involved two factors (the export and the import factor).
This is perhaps a sufficiently wide range of content to suggest that the single observed factor demonstrates enough divergence and structural convergence to suggest the influence of a higher-order night-sky related psychological construct--i.e., noctcaelador.
Capacity rose at the same rate to 11.99 billion ASMs, leaving load factor at 80.6%.
Metabolic syndrome also boosted the risk of stroke in patients with atrial fibrillation (AF) compared with patients with AF and a single cardiovascular-disease risk factor, Dr.
People with HIV have elevated levels of certain cytokines, such as tumor necrosis factor (TNF) and interleukin-1 (IL-1), and these elevated levels may be partly responsible.