The selling of a company's accounts receivable, at a discount, to a factor, who then assumes the credit risk of the account debtors and receives cash as the debtors settle their accounts. also called accounts receivable financing.

Use factoring in a sentence

The factoring was a difficult decision but we needed liquidity so we decided to find a buyer and create a win win situation.

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I had to do some factoring, which was hard for me because I was no good at it and didn't have the time either.

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after-tax basis factor return