factoring

[fak-ter-ing]

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.

factoring

/ 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

Word History and Origins

Origin of factoring¹

factor + -ing ¹

Example Sentences

The supplier of oil filters and windshield wipers has some $6 billion in balance-sheet debt in addition to its off-balance-sheet financing, primarily from factoring, a form of short-term borrowing backed by its customers’ unpaid invoices.

Read more on The Wall Street Journal

Haigh forecasts that the copper market will see a modest surplus next year, and that is without factoring in any additional demand from rising defense budgets.

Read more on The Wall Street Journal

The auto-parts supplier relied heavily on factoring, a form of short-term borrowing backed by customers’ unpaid invoices, The Wall Street Journal has previously reported.

Read more on The Wall Street Journal

And I can see it factoring in and helping us.”

Read more on Los Angeles Times

Borrowing costs are factoring into Ms Carlson's thinking when it comes to the type of home that is feasible for her to purchase - the neighbourhood, the size, the quality of the builder.

Read more on BBC