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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

factoring  

Definition 1.

The selling of a company's accounts receivable, at a discount, to a factor, who then assumes the credit risk of the account debtors and receives cash as the debtors settle their accounts. also called accounts receivable financing.
 

Definition 2.

Sale of a firm's accounts receivable to a financial institution known as a factor.
 
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