The buying of the trade debts of a manufacturer, assuming the task of debt collection and accepting the credit risk, thus providing the manufacturer with working capital. A firm that engages in factoring is called a factor. With service factoring involves collecting the debts, assuming the credit risk, and passing on the funds as they are paid by the buyer. With service plus finance factoring involves paying the manufacturer up to 90% of the invoice value immediately after delivery of the goods, with the balance paid after the money has been collected. This form of factoring is clearly more expensive than with service factoring. In either case the factor, which may be a bank or finance house, has the right to select its debtors.

Accounting dictionary. 2014.

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  • FACTORING — Activité exercée par des entreprises financières (dites sociétés de factoring ou factors ) et qui consiste à acheter les créances que possède un fournisseur sur ses clients pour les recouvrer ensuite sur ces derniers. L’opération de factoring met …   Encyclopédie Universelle

  • factoring — fac·tor·ing n: the purchasing of accounts receivable from a business by a factor who assumes the risk of loss in return for some agreed discount Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. factoring …   Law dictionary

  • Factoring — can refer to the following:* A form of commercial finance see factoring (finance); structured settlement factoring transaction * Factorization, a mathematical concept …   Wikipedia

  • factoring — fáctoring s. n. Trimis de siveco, 10.08.2004. Sursa: Dicţionar ortografic  FÁCTORING/FĂCTĂRIU/ s. n. serviciu complex de natură financiară şi contabilă (acordări de credite, încasări, plăţi, deconturi etc.) pe care o societate comercială îl face …   Dicționar Român

  • Factoring — Fac tor*ing, n. (Math.) The act of resolving into factors. [1913 Webster] …   The Collaborative International Dictionary of English

  • factoring — |factóringue| s. m. Transferência, pelo seu titular, de créditos comerciais para um intermediário financeiro que se encarrega de realizar a sua cobrança. • Plural: factorings.   ‣ Etimologia: palavra inglesa …   Dicionário da Língua Portuguesa

  • Factoring — Das Factoring Dreieck stellt grafisch den Ablauf des Offenen Factorings in einem Unternehmen dar …   Deutsch Wikipedia

  • factoring — involves the cash purchase of a business sales invoices at a discount, after which, the factoring company collects the invoiced amounts from the business customers. Factoring is used where the business needs immediate cash. Glossary of Business… …   Financial and business terms

  • Factoring — Sale of a firm s accounts receivable to a financial institution known as a factor. The New York Times Financial Glossary * * * factoring fac‧tor‧ing [ˈfæktərɪŋ] also ˈdebt ˌfactoring, ˈinvoice ˌfactoring noun [uncountable] FINANCE when a… …   Financial and business terms

  • factoring — /fak teuhr ing/, n. 1. Com. 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… …   Universalium

  • Factoring — 1. Begriff: Aus der Sicht des Forderungsverkäufers (sog. ⇡ Anschlusskunde) ist F. der laufende Verkauf von kurzfristigen Forderungen an eine Factoringgesellschaft (sog. Factor). Gegenstand des F. sind nur Forderungen aus Lieferungen und… …   Lexikon der Economics

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