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 ?
Variable###Factor score coefficients###Rotated factor loadings and communalities
Controlling for the general factor, mean factor loading estimates were -0.100 for Problem Formulation, 0.046 for Perseverance, 0.138 for Goal Driven Behaviors, and -0.338 for Communication.
Principal components (PC) for groundwater and their respective factor loadings, total variance and cumulative total variance rotated by the Varimax method Principal components (1) Variables [PC.sub.1] [PC.sub.2] [PC.sub.3] Factor loadings (2) pH 0.20 0.80 * -0.13 ECw 0.97 * -0.03 0.12 N[O.sub.2] - 0.28 * 0.75 * -0.01 [Ca.sup.+2] 0.74 * 0.20 0.38 [Mg.sup.+2] 0.65 * 0.40 0.33 [Na.sup.+] 0.99 * 0.02 -0.17 [K.sup.+] -0.35 -0.05 0.95 * [Fe.sup.+2] 0.15 -0.78 * -0.13 HC[O.sub.3.sup.-] -0.13 0.73 * 0.56 S[O.sub.2.sup.-] 0.46 0.24 0.76 * [Cl.sup.-] 0.99 * -0.09 -0.05 Eigenvalues 4.32 2.11 1.27 Total % 39.30 19.24 11.56 Cumulative total % 39.30 58.54 70.10 (1)Factorial axes rotated by the varimax method (2) Factor loadings > 0.60 are significant
MIs suggested that some thresholds and factor loadings were noninvariant.
After finding the factor loadings in acceptable range, Average Variance Extracted (AVE) is calculated in MS Excel.
The sample size was sufficiently large for exploratory factor analysis (Beavers et al., 2013) considering the moderate factor loadings SENNA 1.0 found in previous studies (Santos & Primi, 2014).
The factor loadings were obtained after the varimax rotation with absolute suppression below 0.3 (Norman and Streiner, 1994).
Factor loadings ranged from .345 to .881 (Md = .698) for Factor 1; .305 to .599 (Md = .478) for Factor 2; .348 to .490 (Md = .443) for Factor 3; .293 to .449 (Md = .355) for Factor 4, and .253 to .352 (Md = .352) for Factor 5.
There was good factor loading in factor analysis for the Sequencing factors of Screening Checklist.
"Interpersonal Disagreements" has a highest factor loading of 0.936 followed by "Different Idea logic and Philosophic Basis" with a loading of 0.924, "Personality Clashes" with a loading of 0.831, "Value Discrepancies" with a loading of 0.623, "Personal Likes & Dislikes" with a loading of 0.582, "Cultural & Racial Differences" with a loading of 0.524, and "Role Clashes" with a loading of 0.509.
A value of 0.40 was taken as the lower cut-off point for factor loading. When naming the factors, items that have higher factor loadings were taken as a base.