A Factor Was Once an Agent Who Did Business for You
A factor is a contributing element or a number that divides evenly. It also names an agent, and factoring is still a real financial service.
A factor is an element contributing to a result, or a number that divides another exactly. A third sense is commercial and still current: a factor is an agent who buys a company's unpaid invoices at a discount and collects them. That is what *factoring* means in finance, and it has nothing to do with mathematics.
- A contributing element. *A key factor.*
- A number that divides evenly. *Factors of twelve.*
- A commercial agent. *An invoice factor.*
- To break into factors. *Factorise the equation.*
Word forms
| Form | Word | Example |
|---|---|---|
| Noun | factor | A decisive factor. |
| Plural | factors | Several factors. |
| Verb | factor | Factor it in. |
| Noun | factory | A car factory. |
| Related | factorial | Five factorial. |
How it is used in a sentence
- Cost was the deciding factor.Contributing element.
- The factors of twelve are 1, 2, 3, 4, 6 and 12.Mathematics.
- Factoring turns invoices into cash.Finance.
Factor in different fields
- Mathematics — a number dividing another exactly
- Statistics — an underlying variable in factor analysis
- Finance — an agent buying receivables at a discount
- Biology — a substance such as a clotting factor
- Scotland — a land agent managing an estate
From Latin *factor*, a doer or maker, from *facere*, to do — the same root as *fact*, *factory* and *manufacture*.
What is invoice factoring?
Selling unpaid invoices to a third party at a discount to receive cash immediately rather than waiting for customers to pay.
Are factor and factory related?
Yes. Both come from Latin *facere*, to make. A factory is a place of making, a factor a doer or agent.