A factor is a finance company or bank that buys receivables from businesses and then collects the payments directly from the customers. Factoring is a multibillion dollar business.
Factoring arrangements vary widely. Typically the factor charges a commission to the company that is selling the receivables. This fee ranges from 1-2% of the amount of receivables purchased.
Webster Dictionary Meaning
- A steward or bailiff of an estate.
- One of the elements or quantities which, when multiplied together, from a product.
- One of the elements, circumstances, or influences which contribute to produce a result; a constituent.
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