factoring

American  

[fak-ter-ing] / ˈfæk tər ɪŋ /

noun

1. Commerce. the business of purchasing and collecting accounts receivable or of advancing cash on the basis of accounts receivable.

2. the act or process of separating an equation, formula, cryptogram, etc., into its component parts.

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factoring British  

/ ˈfæktərɪŋ /

noun

1. the business of a factor

2. the business of purchasing debts from clients at a discount and making a profit from their collection

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Etymology

Origin of factoring

factor + -ing ¹

Example Sentences

Even factoring in unemployment payments, we now have $1,600 less to spend each month.

From MarketWatch • Mar. 31, 2026

Anna Rathbun, CEO of Grenadilla Advisory, is factoring in a more prolonged conflict in Iran.

From Barron's • Mar. 29, 2026

BTS’s forthcoming “Arirang” tour, with about half the shows of “Eras,” could exceed similar per-concert heights when factoring in all the different ways fans open their wallets for the K-pop group, according to industry analysts.

From The Wall Street Journal • Mar. 20, 2026

The SPV then paid the auto-parts retailer to acquire its expected payments, a type of lending known as factoring, court filings show.

From The Wall Street Journal • Mar. 17, 2026

I’m really not in the mood to divvy up everything into eleven equal parts, factoring in age, body weight, and physical output.

From "Mockingjay" by Suzanne Collins