A commission or fee paid to a factor (a merchant who buys and sells goods on behalf of others); the business or services provided by a factor.
From 'factor' (a merchant agent) plus '-age' (a fee, duty, or collective noun). Used since the 1600s in commerce to describe the payment structure between merchants and their sales agents.
Before companies had sales teams, they hired 'factors'—merchants in distant ports who'd sell your goods and send you payment minus their commission (factorage). Colonial traders built fortunes on this system, making the factor more powerful than many nobles.
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