What is Factoring: Definition and 338 Discussions

Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs. Forfaiting is a factoring arrangement used in international trade finance by exporters who wish to sell their receivables to a forfaiter. Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. Accounts receivable financing is a term more accurately used to describe a form of asset based lending against accounts receivable. The Commercial Finance Association is the leading trade association of the asset-based lending and factoring industries.In the United States, Factoring is not the same as invoice discounting (which is called an assignment of accounts receivable in American accounting – as propagated by FASB within GAAP). Factoring is the sale of receivables, whereas invoice discounting ("assignment of accounts receivable" in American accounting) is a borrowing that involves the use of the accounts receivable assets as collateral for the loan. However, in some other markets, such as the UK, invoice discounting is considered to be a form of factoring, involving the "assignment of receivables", that is included in official factoring statistics. It is therefore also not considered to be borrowing in the UK. In the UK the arrangement is usually confidential in that the debtor is not notified of the assignment of the receivable and the seller of the receivable collects the debt on behalf of the factor. In the UK, the main difference between factoring and invoice discounting is confidentiality. Scottish law differs from that of the rest of the UK, in that notification to the account debtor is required for the assignment to take place. The Scottish Law Commission is reviewing this position and seeks to propose reform by the end of 2017.

View More On Wikipedia.org
Recent contents Top users
  1. RJLiberator

    Unique factoring over E-Primes criteria

    Homework Statement Let E denote the set of positive even integers. An element p ∈ E is called an E-prime if p cannot be written as a product of two elements of E. Determine a simple criteria for when elements of E can be uniquely factored into a product of E-primes. Homework Equations Some...
  2. ProjectTruth

    What should be my sequence of operations here? (factoring)

    Hey Guys, So I'm currently factoring polynomials. As you all know,when trying to factor a polynomial with 4 terms,the answer can be the difference of a trinomial and monomial squares. So I had the problem 4a^2-4ab+b^2-c^2 I thought(book doesn't explain it well) that your first step was to...
  3. T

    MHB Factoring Polynomial Equations

    I would like to know if it is possible to determine if a polynomial has rational zeroes, or, in other words, is unfactorable using whole numbers. For example 4x^3+2x^2-4x+25. I know you can use trial and error to sub in the factors of 25, and I understand the rational root theorem. However, I...
  4. M

    Factoring Polynomials of Any Degree: Can Complex Numbers Help?

    Can any polynomial in any degree of x be factored into a product of the form (leading coefficient)(x-a)(x-b) ... (x-z) as long as we can use complex numbers for a,b, etc.? Thanks
  5. D

    MHB Factoring Problem: Converting [-s(s-(s-1)-2s+n(n+1)] to (n-s)(n+s+1)

    how do you convert this [-s(s-(s-1)-2s+n(n+1)] into (n-s)(n+s+1)
  6. M

    Factoring Cosine: Get Help Solving the Problem

    The Question: My Attempt: I use the 'Double Angle Formula' to get to the second line. Then multiply the sigma-x into what's in the brackets, then factor out at the end. I'm not sure how I reach the answer that's provided with the solution. Any help would be appreciated. Thank You.
  7. L

    Specific factoring question

    So given the problem 2(x+3)(x-2)/(x-2)≥0 How come we can't factor x-2 in the numerator against x-2 in the denominator? I mean theyre all just factors right? Does it have something to do about it being an inequality? We got this problem on a test yesterday, and the correct way to solve it was to...
  8. D

    Create a polynomial with desired characteristics, factoring

    Homework Statement Hello! I understand that this is a very simple thing, but somehow I can't find the key :) Please, take a look a pictures attached with a problem and an answer. The task is to create a polynomial f with real number coefficients which has all of the desired characteristics...
  9. M

    Solving Polynomials: Factoring

    Homework Statement Solve for x. a) 2x^3-3x^2-5x+6=0 Homework Equations -Find possible values of x -Divide that factor by 2x^3-3x^2-5+6 using long division The Attempt at a Solution ƒ(2)=2(2)^3-3(2)^2-5(2)+6 ƒ(2)=16-12-10+6 ƒ(2)=0 Now using long division divide 2x^3-3x^2-5x+6 by (x-2)...
  10. pellman

    Fundamental theorem of algebra and factoring?

    Is the fundamental theorem of algebra (for polynomials on the complex plane) equivalent to the statement that any polynomial p of degree n>0 can be written p(z) = c(z - a_1 ) (z- a_2) \cdot \cdot \cdot (z - a_n ) or am I missing some subtle distinction? And if not equivalent, does the theorem...
  11. C

    MHB Solve Factoring Problem: (x+y)^2+2(X+Y)+1

    The problem is (x+y)^2+2(X+Y)+1 and the answer is supposed to be (X+1+Y)^2 I looked it up on this calculator but the second step makes no sense. First I do not know how the +2 disappears and where the extra (X+Y) come from. Also it's explanation when you click on the black box doesn't make...
  12. D

    Factoring a quadratic: strange issues

    Homework Statement Hello! One of the easiest rules (when possible to apply) to factor a quadratic is to find both x-s by x1 + x2 = b x1 * x2 = c Homework Equations Please, take a look at what is written in the book. I can't grasp why x1 = -2 and x2 = 3, and not, as I thought, x1 = -3 and x2...
  13. H

    Linear Algebra: Characteristic Equation Factoring

    Homework Statement If I have the characteristic equation: -λ3 + 3λ2 + 9λ + 5 And I'm told that one of its eigenvalues is -1. How do I find the rest of the eigenvalues? Homework Equations -λ3 + 3λ2 + 9λ + 5 The Attempt at a Solution The furthest I can get is: -λ3 + 3λ2 + 9λ + 5 = (λ + 1) x...
  14. C

    Rational functions: combine and simplify terms

    Homework Statement (4a/a+4)+(a+2/2a) Homework Equations Just combine and then factor out The Attempt at a Solution It's actually fairly simple, but I'm having difficulty at the end. /multiply each term by opposite denominator 4a(2a)/a+4(2a) + a+2(a+4)/2a(a+4) /combine 4a(2a)+(a+2)(a+4) /...
  15. E

    Prove that for a,b,c > 0, geometric mean <= arithmetic mean

    Homework Statement Let ## a,b,c \in \mathbb{R}^{+} ##. Prove that $$ \sqrt[3]{abc} \leq \frac{a+b+c}{3}. $$ Note: ## a,b,c ## can be expressed as ## a = r^3, b = s^3, c = t^3 ## for ## r,s,t > 0##. Homework Equations ## P(a,b,c): a,b,c \in \mathbb{R}^{+} ## ## Q(a,b,c): \sqrt[3]{abc} \leq...
  16. N

    Factoring equation with real coefficients

    Homework Statement Find the roots of z^4+4=0 and use that to factor the expression into quadratic factors with real coefficients. Homework Equations DeMoivre's formula. The Attempt at a Solution I have been able to identify they are \pm 1 \pm i but i have no idea how to factor the...
  17. A

    Factoring a number with Euler's constant involved?

    Homework Statement Determine the maximum value of the function f(x) = 4e^(-x) - e^(x) Homework Equations dasfgd The Attempt at a Solution 1. I first found the derivative of the function and it turned out to be f`(x) = -4e^-x - e^x 2. I believe that to find the maximum value of this function...
  18. I

    Factoring a third degree polynomial

    Homework Statement Factor out the polynomial and find its solutions x^3-5x^2+7x-12[/B]Homework EquationsThe Attempt at a Solution I tried to factor it, but I'm stuck in this step x^2(x-5)+7(x-5)+23= 0. I graphed the equation, and I know there is two imaginary solutions and one real positive...
  19. D

    Geometry question form ax^2+bx+c

    I was tutoring a student and I came across the following question. I feel like I'm missing something obvious, but it seems like there are too many variables for an answer to be determined. The attached picture contains all of the question details.
  20. R

    Need Help With Factoring Polynomials

    (x2)3(2x3)3/(4x)2 I got 1/2x^13, is this correct?
  21. J

    MHB Factoring $27720$ into Co-Prime Factors

    The number of ways in which the number $27720$ can be split into two factors which are co prime
  22. E

    Factoring Help, Finding two variables

    Homework Statement If f(x) = mx^3 + gx^2 - x + 3 is divided by x - 1, the remainder is 3. If f(x) is divided by x + 3, the remainder is -1. What are the values of m and g? Homework Equations Remainder Theorum/Factor Theorum The Attempt at a Solution Here is what I did...
  23. F

    MHB Did I misinterpret the sign attached to a term when factoring?

    I wanted to factor xy+x-2y-2 I got x(y+1)-2(y-1) and got stuck I tried somethings out and noticed (x-2)(y+1)=xy+x-2y-2 so how come I did get stuck? Did I extract the 2 incorrectly with the sign? For example should I have interpreted it at -2y-2 not 2y-2?
  24. B

    Dumb Question: When Factoring Do We List Negative Factors?

    I only see positive factors in my book. Example: 2 and 2 are factors of 4. But aren't -2 and -2? Is there some unspoken rule in math that only positive factors count? Thanks!
  25. Dethrone

    MHB Factoring y^4+y^2+1: Other Ways to Approach

    How do you factor y^4+y^2+1? I know that if you regroup them like this: (y^4+2y^2+1)-y^2, factoring becomes apparent: (y^2 + 1 + y) (y^2 + 1 - y) Is there any other way to factor this? It's just a pain to have to try out these "tricks" every time I try to factor something.
  26. Maxo

    Factoring algebraic complex expression

    Homework Statement Factor the expression ac-bd+adi+bci Homework Equations The Attempt at a Solution We can factor the variable 'a' which gives: a(c+di)-bd+bci The common factor in the remaining terms is b, and if we also factor out b we get a(c+di)-b(d+ci) But this is not the...
  27. Dethrone

    MHB Factoring x^2 + y^2 | Sophie Germain's Identity

    I came across an interesting website today, which stated that you can factor sums of squares IF 2AB is a perfect square known as the Sophie Germain’s Identity. Below is the website for your reference. http://oakroadsystems.com/math/sumsqr.htm I realize that if it is a perfect square, then the...
  28. T

    Quick Tips for Factoring Polynomials: Solving 7x^2-9X-6 Efficiently

    hi all I am stuyding how to factor equations such as :- 7x^2-9X-6 The problem i have is that it takes me too long to find 2 numbers whose sum is D and the same numbers whoes product is E. Is there any way/tips/guide on how i can achieve this quickly?
  29. W

    Tensor Products and Maps Factoring Through

    Hi, I understand the tensor product of modules as a new module in which every bilinear map becomes a linear map. But now I am trying to see the Tensor product of modules from the perspective of maps factoring through, i.e., from properties that allow a commutative triangle of maps. As a...
  30. D

    MHB Factor a^4+b^4: Simplify \(a^4 + b^4 \)

    I am trying to write \[ \frac{a^4+b^4}{a^2+b^2} \] with nothing higher than a power of two. I know \(a^2+b^2 = (a + ib)(a - ib)\) and \(a^4 + b^4 = (a^2 + ib^2)(a^2 - ib^2)\), but I am to take the numerator down in farther in hopes of some cancelling in the denominator.
  31. L

    Efficient Prime Factoring Method for Numbers Below the Square Root"

    trust me this is trivial... As a kid I had a teacher fond of asking if numbers were prime. Of course at the time I had no calculator and did not have many primes remembered. I did not even know the less than square root. I came up with a method that made a simple chart of smaller than the...
  32. Z

    Fermat Factoring (Zeda's Method)

    Hey everybody, I thought I would share an algorithm for factoring that I designed a few years ago while working on a Z80 project. I noted the same thing Fermat must have: a^{2}-b^{2}=(a+b)(a-b) After a few moments of looking at it, I realized the translation of that simple expression: If I can...
  33. H

    Factoring Math Expression Simplification: Understanding the Steps

    Homework Statement Simplify the expression by factoring. 3(x+1)1/2(2x-3)5/2+10(x+1)3/2(2x-3)3/2 Homework Equations The Attempt at a Solution 3(x+1)1/2(2x-3)5/2+10(x+1)3/2(2x-3)3/2 = (x + 1)1/2(2x-3)3/2[3(2x-3) + 10(x+1)] = (x + 1)1/2(2x - 3)3/2(6x - 9 + 10x + 10) = (x + 1)1/2(2x - 3)3/2(16x...
  34. N

    What are the smallest four positive solutions for 9cos(2t)=9cos2(t)-4?

    Homework Statement 9cos(2t)=9cos2(t)-4 for all the smallest four positive solutions Homework Equations The Attempt at a Solution I've factored it and pulled out 9cos(t) and made that = u so i have u2-2u-4 That factors to 3.23606 and -1.236 Next i added 9cos(t) back in...
  35. paulmdrdo1

    MHB Factoring 4th degree polynomial.

    $\displaystyle x^4+2x^3-8x^2+18x+9$ this is what i tried, $x^4+2x^3-8x^2 = (x^2+4x)(x^2-2x)$ then, $a(x^2+4x)+b(x^2-2x)=18x$ where ab=9 did i set up my solution correctly? can you tell me where I'm wrong.
  36. H

    X^3/2 - 2x^-1/2 + x^1/2 Help Factoring

    I'm looking to factor this... X^3/2 - 2x^-1/2 + x^1/2 The textbook offers the solution 1-x ^4/3 No idea how to get this result. I got X ^-3/2 (x-1)^2 I would like it if someone could shed light on how to factor x^-3/2 from things like 2x ^1/2 I assume you just keep the equation...
  37. Seydlitz

    Techniques for Factoring Large Polynomial

    Hello guys, I'd like to ask you how to efficiently factorize complicated polynomial like this one for example: $$\frac{128t^4+128t^3+192t^2+32t+40}{(4t^2+1)^4}$$ I've spend more than a hour trying to decrypt and decompose the polynomial, but to no avail. For simple cubic polynomial I know...
  38. H

    Factoring 3rd degree polynomial for eigenvalues

    Homework Statement Was given a matrix To find the eigenvalues I set up the characteristic equation [-1-x | 7 | -5 ] [-4 | 11-x | -6 ] [-4 | 8 | -3-x] With some dirty work I got this bad boy out, which I'm having trouble factoring -x3+7x2-15x+9Homework Equations...
  39. B

    MHB Solve Polynomial: Factoring Tips & Tricks

    any hints on how to start this problem? $12x^4+19x^3-26x^2-61x-28$
  40. paulmdrdo1

    MHB Factoring Polynomials: Start Here

    how would i start factoring this $m^8-n^8-2m^6n^2+2n^6m^2$
  41. B

    MHB Grouping terms to start factoring.

    how would i go about properly grouping terms to start my factoring? 1. $12x^2y^3-24y^3z-6x^6+30y^4-15x^4y+4x^2y+12x^4z+10y^2-8yz$ thanks!
  42. B

    MHB Need help factoring these polynomials?

    can you guys help me factor this polynomial. $\displaystyle 2x^2-4xy+2y^2+5x-3-5y$ $6x^2-xy+23x-2y^2-6y+20$ by the way this is what i tried in prob 1 $2(x-y)^2+5(x-y)-3$ -->> I'm stuck here. and in prob 2 i have no idea where and how to start. thanks!
  43. A

    Understanding Factoring a Quadratic Equation: Common Mistakes and Solutions

    Homework Statement Question + attempt: Homework Equations The Attempt at a Solution Why is it that when I expand the factored form, I don't get the original equation?
  44. T

    Is There a Faster Way to Factor Than Just Guessing Factors?

    One of my quadratic formula problems required me to factor so that the product of 2050s factors added to -23, that may not be exact, but I basically asked for a new problem since it was just practice, after an hour of getting close but never the right answer, and I was wondering, other than just...
  45. S

    MHB How do I factor a binomial with a coefficient of 4?

    I'm having trouble factoring the following binomial... can someone try to point me in the right direction please? 4y^3+4 It has been 7 years since I took algebra and I am trying to get my review done. This one just does not make sense to me right now... Thanks!
  46. D

    MHB Expressing a number in scientific notation and factoring a cubic

    Basically I don't know anyone in real life that can help me with this, so I need help checking to see if my answers are correct :) PART A 5) Express .00024 in Sci Notation My answer: 2.4 x 10^-4 6) Factor the following completely: 3x^3 - 18x^2 + 24x My Answer: (3x)(x - 4)(x - 2)
  47. paulmdrdo1

    MHB How can we factor $\displaystyle x^4 + 1$ into the difference of two squares?

    how to force factor this into the difference of two squares. $\displaystyle x^4 + 1$
  48. A

    Factoring polynomials-Can there be fractions?

    Homework Statement I want to factor polynomials. However, I want to know how it is possible to factor polynomials where the linear factors that result do not have integers but rather fractions. Should we continue factoring if there are fractions, or do we have to stop? Say we have this...
  49. A

    Quartic polynomial factoring

    Homework Statement p(x) = x^4+10x^3+26x^2+10x+1 p(x) = a(x)b(x) where a(x) and b(x) are quadratic polynomials with integer coefficients. It is given that b(1) > a(1). Find a(3) + b(2). Homework Equations p(x) = x^4+10x^3+26x^2+10x+1The Attempt at a Solution I tried to factor the given quartic...
  50. N

    Factoring a 3rd degree poly to get a start on partial fractions

    Hello all, I'm working through old exams for an electrical subject (no solutions given) and I think I've gone wrong somewhere and been left with something I'd like to learn how to work with anyway: \frac{50}{(s+\frac{1}{s}+1)^2-s^2} \frac{50}{2s+3+\frac{2}{s}+\frac{1}{s^2}}\times...
Back
Top