factor
A factor is something that contributes to a particular result or outcome.
In commercial law, a factor is an agent authorized to sell property on behalf of its owner. The factor has possession and control of the property during the sales period and may sell it in the ordinary course of business.
In finance, a factor is a party that purchases accounts receivable from a business, while the seller receives immediate cash to improve liquidity or fund operations.
[Last reviewed in October of 2025 by the Wex Definitions Team]
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