factoring Definition
- 1the process of selling accounts receivable or invoices to a third-party financial company, called a 'factor', at a discount in exchange for immediate cash payment
- 2the process of finding the factors of a given number or algebraic expression
Using factoring: Examples
Take a moment to familiarize yourself with how "factoring" can be used in various situations through the following examples!
Example
The company was able to improve its cash flow by factoring its invoices.
Example
Factoring is a common practice in the textile industry.
Example
The bank offers factoring services to small businesses.
factoring Synonyms and Antonyms
Synonyms for factoring
- invoice factoring
- accounts receivable factoring
- debt factoring
Summary: factoring in Brief
Factoring [ˈfæktərɪŋ] refers to two distinct processes. The first is the practice of selling accounts receivable or invoices to a third-party financial company, called a 'factor', at a discount in exchange for immediate cash payment. The second is the process of finding the factors of a given number or algebraic expression. Factoring is commonly used in the textile industry and by small businesses looking to improve their cash flow.
