TeachMeFinance.com - explain Factor
Factor -- 1. An agent who receives merchandise under consignment or under a bailment contract, who sells it for the principal or in the factor's own name, and who is paid a commission for each sale.
2. A financing company which purchases accounts receivable under agreed conditions and at agreed discounts and thus makes funds immediately available to approved sellers.
Factor -- An agent employed to sell goods consigned to him.
The difference between a factor and a broker is that the factor
is entrusted with the property which he is to dispose of
while the broker, in a strict sense, is only employed to make a
bargain for the sale of property. The term factor is most commonly
used in the cotton trade.
The word factor is often used in the sense of influence, force
or element, as a factor in the situation or in the money market
or stock market.
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Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".
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