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 ?
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.
(13) These continuously growing S-W cities also typically experienced either above-average metro factor gains or below-average local factor losses compared to other large cities in their region.
"It is difficult to compare collection rates between councils because there are a number of local factors that can impact upon annual collection rates," the spokesperson said.
To account for local factors that affect population change at the national level, population gravity models were incorporated as well as multivariate methods in the construction of LandCast.
In addition to the technical and local factors, the market will be affected with external ones, namely conditions at other Gulf markets and the global economy status.
These, and all other projections, are derived from a Waleswide poll and calculated on the basis of a uniform national swing, which does not take account of local factors.
In her address, at Geneva Ministerial-level conference on Preventing Violent Extremism - A way forward, Ambassador Janjua said that the view that only local factors such as poor governance, lack of human rights and poor socio-economic conditions gave rise to violent extremism was incorrect, said a press release received here Sunday.
Ill-planned urbanization, not road worthy vehicles on the road, lack of awareness and despicably weak institutional capabilities for air pollution management and such other local factors and actors have played havoc with air quality in our cities and towns.
Step-wise regression results indicated that regional variables (latitude, longitude and mean annual temperature) explained 49.8% of the variation of AGC, while local factors (i.e.
Metodi Majnov says that local factors in Macedonia are much more influential than global developments.
What brings variation is the differing income levels (and associated impact on spending priorities) and local factors such as culture, ethnicity/identity, and local product availability.
Apple Australia vice-president Tony King attended the inquiry and testified that Apple had the same price for its products around the world, but local factors often influence a retail price difference.