fac·tor·ing n: the purchasing of accounts receivable from a business by a factor who assumes the risk of loss in return for some agreed discount
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
An arrangement whereby a creditor sells his debts to a factor for an immediate sum, usually for a proportion of their face value. The factor then collects the debts as they fall due. Bad debts revert to the debtor who has to repay the amount received from the factor.
Easyform Glossary of Law Terms. — UK law terms.
a form of asset financing based on the sale of book debts. Essentially, factoring involves the purchases from suppliers of accounts payable to them by customers to whom they have provided goods or services; such accounts are referred to as 'receivables'. For an example, see Re Charge Card Services  Ch. 150.
Collins dictionary of law. W. J. Stewart. 2001.
Also known as invoice discounting. Where a company which supplies goods or services on credit sells its unpaid invoices (that is, book debts or receivables) to a factoring company, at a discount equivalent to the prevailing rate of interest. Factoring can be:• "Non- recourse factoring", in which case the factoring company takes the credit risk of the invoices not being paid.• "Recourse factoring", in which case the factoring company can sell any invoices which do not get paid back to the company (which therefore takes the credit risk). The fees charged will reflect this risk.• "Disclosed invoice discounting" where the customer is aware of the discounting arrangement.• "Non-disclosed invoice discounting" where the customer is not aware of the discounting arrangement.Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
Look at other dictionaries:
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Factoring — Fac tor*ing, n. (Math.) The act of resolving into factors. [1913 Webster] … The Collaborative International Dictionary of English
factoring — |factóringue| s. m. Transferência, pelo seu titular, de créditos comerciais para um intermediário financeiro que se encarrega de realizar a sua cobrança. • Plural: factorings. ‣ Etimologia: palavra inglesa … Dicionário da Língua Portuguesa
Factoring — Das Factoring Dreieck stellt grafisch den Ablauf des Offenen Factorings in einem Unternehmen dar … Deutsch Wikipedia
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Factoring — Sale of a firm s accounts receivable to a financial institution known as a factor. The New York Times Financial Glossary * * * factoring fac‧tor‧ing [ˈfæktərɪŋ] also ˈdebt ˌfactoring, ˈinvoice ˌfactoring noun [uncountable] FINANCE when a… … Financial and business terms
factoring — /fak teuhr ing/, n. 1. Com. the business of purchasing and collecting accounts receivable or of advancing cash on the basis of accounts receivable. 2. the act or process of separating an equation, formula, cryptogram, etc., into its component… … Universalium
Factoring — 1. Begriff: Aus der Sicht des Forderungsverkäufers (sog. ⇡ Anschlusskunde) ist F. der laufende Verkauf von kurzfristigen Forderungen an eine Factoringgesellschaft (sog. Factor). Gegenstand des F. sind nur Forderungen aus Lieferungen und… … Lexikon der Economics