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.

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 addition, data on a number of stable factors were collected to serve as a comparison.
When he did go out, it was to watch local operatic society shows and music remained the one stable factor in his life.
Experts say that food should be seen as a stable factor in a busy life, and help to alleviate stress.
With new owners, chairmen and directors entering and leaving through a revolving Boardroom door, the only stable factors at the club have been Ally - whose offer to resign last week was turned down and is now serving a year's notice period - and the ever-loyal supporters.
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.