Factoring

/ˈfæktərɪŋ/ noun, verb (present participle)

Definition

The process of breaking down a number or mathematical expression into factors; the business practice of buying accounts receivable at a discount; the present participle of 'factor'.

Etymology

From 'factor' plus '-ing' (present participle and noun-forming suffix). Used since the 1600s in commerce and mathematics with related but distinct meanings.

Kelly Says

Modern 'factoring' in business is how small companies instantly turn future payments into cash—they sell their invoices to a factor at a discount and get money now. It's surprisingly how much of commerce runs on this simple need for immediate cash.

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