factoring

American  

[fak-ter-ing] / ˈfæk tər ɪŋ /

noun

1. Commerce. 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 parts.

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factoring British  

/ ˈfæktərɪŋ /

noun

1. the business of a factor

2. the business of purchasing debts from clients at a discount and making a profit from their collection

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Etymology

Origin of factoring

factor + -ing ¹

Example Sentences

Management has said they expect that figure to drop significantly in 2026, when factoring out last year’s acquisition of Kurt Geiger, which makes handbags, footwear and other accessories.

From MarketWatch

Google is this year for the first time factoring AI use into some employee performance reviews for software engineers, according to people familiar with the matter.

From The Wall Street Journal

When also factoring in American workers without retirement savings, the median amount is $955.

From MarketWatch

Carriox claimed to engage in “factoring,” the business of buying accounts receivable, or yet-be-paid invoices, from companies at a discount, court records show.

From The Wall Street Journal

And when factoring in contributions from acquisitions, ServiceNow’s outlook wasn’t as robust as some investors wanted “given all their AI and spend on acquisitions,” Klein wrote.

From MarketWatch