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 ?
In this subsection we will see how the study of the factorability of scalar and matrix functions is related to the study of the spectra of the paired singular integral operators [T.sub.{a,b}] and [[??].sub.{a,b}] defined in (2.4) and (2.5).
After the dataset was assessed for its factorability, the 14 items of the IWBAS were subjected to factor analysis.
The Kaiser-Meyer-Oklin value was 0.89 (i.e., >0.60), and Barlett's test of sphericity (0.79) reached a statistical significance (P = 0.10), thus supporting its factorability [18].
The Kaiser-Meyer-Oklin value was 0.92, exceeding the recommended value of 0.6 (Kaiser, 1970, 1974) and the Bartlett's Test of Sphericity (Bartlett, 1954) reached statistical significance, supporting the factorability of the correlation matrix.
Two statistical measures were also generated by SPSS to help assess the factorability of the data: Bartlett's test of sphericity and Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy (Pallant, 2005).
Table 2), exceeding the recommended value of .6 [Pallant (2005)] and the Barlett's test of sphericity [Pallant (2005)] reached statistical significance, supporting the factorability of the correlation of the matrix.
To determine the factorability of the inter-item correlation matrix, Bartlett's (1954) test of sphericity and the Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy (Kaiser, 1974) were calculated.
The correlation matrix, the matrix determinant and the results of the Kaiser-Meyer-Olkin (KMO) sampling adequacy test were analyzed regarding factorability. For factor extraction, Principal Components Analysis (PCA) was used.
The Kaiser-Meyer-Olkin (KMO) measure for sampling adequacy and Bartlett's test of sphericity were utilized to test the factorability of intercorrelation matrices for these three constructs.