noun
factor
A business that buys unpaid invoices at a discount and collects payment.
The factor buys our unpaid invoices and collects payment from customers.
Etymology
Factor first designated an agent conducting business for others. The financial sense specializes that role to a business that takes over receivables and collects the amounts due.
More examples
- We sell invoices to a factor at a discount.
- Customers pay the factor directly when their invoices come due.
- The company compares offers from several factors before selling its invoices.
Forms
factor · factors
factoring noun — The business of buying unpaid invoices.