noun. The act of resolving into factors.

noun. A financial transaction whereby a business sells its accounts receivable to a third party (called a factor) at a discount.

verb. Present participle of factor.

noun. (mathematics) the resolution of an entity into factors such that when multiplied together they give the original entity

"Sears representatives played down the decision by CIT Group Inc., the largest U.S. provider of what are known as factoring services for vendors, saying the payables the firm had financed amounted to only about 5% of the retailer's inventory."

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factor