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 ?
These findings support previous research that organizational factors contribute to the development of frustration, and perhaps to burnout (Arches, 1997, Jayaratne, et.al., 1991).
These cytokines include platelet-derived growth factor, transforming growth factor B1, platelet-derived epidermal growth factor, platelet-derived angiogenesis factor platelet factor 4, and platelet-activating factor.
The use of emission factors is of particular importance in the various air permitting programs, especially in determining the applicability of the Federal Prevention of Significant Deterioration (PSD) or Emission Offset permitting programs.
As Mark Stahl, senior vice president at consulting firm Callan, says, "Conventional capitalization- weighted indexes certainly have exposures to factors, but, for investors who believe in a factor approach, there are better ways to home in on them."
So, the firm built Factor Allocator as a way to help investment professionals educate themselves about how to implement factors in their core portfolios.
10/1997 on easing the financial deadlock and economic losses as a contract between a party called adherent supplying goods or providing services, and a bank or financial institution specializing called factor, which the latter shall finance tracking receivables and credit risk protection and adherent gives to the factor, by way of sale or pledge, claims arising from the sale of goods or provision of services for third parties.
Out of these 435 patients 273 (62.8%) had coagulation factor deficiency, 81 (18.6%) had platelet function defects and 81 (18.6%) had vWF deficiency.
This may be possible where its clients - the parties issuing the invoices - have strong credit history, hence the factor can look to the strong credit history of the clients to provide assurance of payment.
Marius Savin, general manager of Egypt Factors, called factoring "A tool to enhance export growth, and the Egyptian market has huge growth potentialC* Multinationals are interested in without recourse factoring."
The Debtors (The Adherent's customers, the buyers of goods, services or work, which are notified over the subrogation factor in the Adherent's rights, as well as over its obligation to pay the invoice directly and only to factor).
Similarly, the fourth Zubulake factor--the relative resources of the parties--is comparable to the second McCourts factor: whether the nonparty could more readily bear the costs than the requesting party.
Traffic rose 14.1% to 2.7 billion RPMs, which bumped up load factor 1.5 points to 78.1%.