factoring Definition

factoring

Definition

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.

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Related Terms

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Related Terms on BusinessDictionary

discount factoring
discounting of accounts receivable
finance factoring
financing factor
forfaiting
maturity factoring

non-recourse financing
service factoring
service plus finance factoring
undisclosed factoring
asset-based lending

Popular 'Accounting' Terms

current ratio
equity
working capital
asset
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revenue
net income
negotiable
net profit
net worth

factoring in the news

Tools

factoring is ...

... part of the Accounting subject.

Nearby Terms

fact book
factor
factor analysis
factor model
factor portfolio
factoring
factors of production
factory
factory orders
fade
FAFSA

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