factor

(redirected from local factor)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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 ?
As it can be seen on Panel A of table 3, Hypothesis 3a, which suggested an increase in the influence of local factors on the performance of a portfolio of shares with ADRs following the start of the control regime, remains valid since--despite their continuing and real importance--rather than increasing in influence it in fact diminished slightly.
While for a number of states local factors are still very important, for many states that experienced large increases in house prices a substantial fraction of these increases is attributable to the national factor.
This view goes against the grain of recent scholarship that shows how local factors profoundly shaped missionary theory and practice.
The minister was told that a regional pool of researchers was keen to try to identify local factors behind the differences.
Many local factors drive market share, however, and this argument cannot stand alone in developing the business case for patient safety.
The maps from our study indicate considerable variation even to the district level of analysis, which suggests important local factors may be at work in determining rates of transmission.
The mechanisms by which estrogen regulates bone turnover are still not well understood, although studies in animals suggest that estrogen acts by altering either the production or activity of local factors that regulate osteoclast and osteoclast precursors (9,11).
Its products are accountancy packages for small enterprises, with a special edition for each different country to take into account local factors such as goods and services taxes.
Most "common" lands were, in fact, extremely complex property arrangements, in which different families' use rights were based on a multitude of local factors.
Oil companies claim distribution costs and local factors influence pricing.
Local factors include obstructions caused by lack of space, cysts, other teeth appearing in the wrong place, and supernumerary (extra) teeth.
Local factors are those that occur directly at the wound site.