factor

Primary tabs

  • A factor is a cause or reason that contributes to a result.
  • A factor is also an agent hired to sell property on behalf of its owner. 
    • The factor is given control and possession of the property from the start of the sale period until either the time of sale or the end of the agency relationship.
  • Someone who buys accounts receivable in exchange for a lump sum of money. 
    • The factor acquires rights to the future income stream from the accounts receivable, and the seller acquires immediate cash to fuel its business.

[Last updated in November of 2022 by the Wex Definitions Team]