factor

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Related to stable factor: proconvertin, Christmas factor

Factor

A financial institution that buys a firm's accounts receivable and collects the accounts.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
In Figure 9(a), it can be seen that the stable factors are smaller in 5th and 6th stages.
In addition, data on a number of stable factors were collected to serve as a comparison.
He also pointed out that since the fuel source is right there, and the price of that fuel will be a known stable factor, that Kemper will help to shield its ratepayers from potentially volatile fluctuations in fuel cost.
The one stable factor in the whole situation was Jim Jefferies."
Factor VII, otherwise known as Stable Factor and Proconvertin, is a vitamin K-dependent glycoprotein that is produced in the liver.
Factor VII, also known as Stable Factor and Proconvertin, is a vitamin K-dependent glycoprotein that is produced in the liver.
Recent work by Skeem and Douglas and the work of Hanson and colleagues describe more elegant aspects of dynamic risk, such as risk state versus risk status and stable factors versus acute factors.
There is some evidence that depressed individuals tend to attribute their negative life experiences to internal, stable factors (Abramson, Metalsky, & Alloy, 1989)--that, in essence, they believe they are the cause of their own misery, and that they will always be miserable.