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

Markets have reacted to these events by factoring in higher inflation and borrowing costs, and those factors have led to a global rollercoaster on bond markets.

From BBC • May 5, 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

Retail receipts jumped 1.7% last month, the government said Tuesday, after factoring in seasonal patterns in sales.

From MarketWatch • Apr. 21, 2026

But even factoring in a special $15 dividend, prorated over, say, three years, Costco’s dividend yield would only amount to 1.1%.

From Barron's • Apr. 16, 2026

I’m really not in the mood to divvy up everything into eleven equal parts, factoring in age, body weight, and physical output.

From "Mockingjay" by Suzanne Collins