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

Morningstar raises its fair-value estimate for SK Telecom ADRs to $44.70 from $35.00, factoring in a 50% discount for capital gains tax on sale and illiquidity.

From The Wall Street Journal • May 8, 2026

But others framed the defense of Babb more charitably, as a kind of loyalty to Fairhope’s own employees, without politics factoring in.

From Slate • May 4, 2026

But she’s not factoring in Fed cuts, sees inflation holding north of 3% for much of the year, and expects benchmark 10-year Treasury note yields to trend toward the 4.5% level.

From Barron's • Apr. 14, 2026

Across income levels, four years of college comes at a tremendous expense relative to most families’ earnings, even after factoring in financial aid.

From MarketWatch • Apr. 9, 2026

It took ten minutes for him to re-create the solution he’d figured out with Mr. Keeney, this time factoring in the actual spacing between the two rock pillars which had been missing until now.

From "The Smartest Kid in the Universe" by Chris Grabenstein