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.

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  1. C

    Question about factoring for calculus

    Hello, I have been reading these forums for quite a while now and am very impressed! I have a question :) I need to find the lim(x->4) (k^2-16)/(sqrt(k)-2) How would I go about factoring k^2-16 so that I can get sqrt(k)-2 on the numerator? Thanks!
  2. M

    Solving Simple Factoring Problems: Tips and Tricks

    Hello, I am having a few minor factoring problems. Answers are not matching the answer book. I will show you what I have done =p^2 - 2p +1 - y^2 -2yz - z^2 =(p-1)^2 (-y-z)(y+z) (the answer book states (p-1+y+z)(p-1-y-z)) I don't know how the got that next x^2 +2...
  3. R

    Efficiently Factor Polynomials: Solving 36(2x-y)^2 - 25(u-2y)^2

    Factoring polynomials(2nd problem) Factor: 36(2x-y)^2 - 25(u-2y)^2 Having trouble where to start...should I expand out?
  4. mbrmbrg

    Factoring a 4th degree polynomial

    I have the equation f''(t) = 0 =\frac{\ -6t-4t^4+2t^5}{(1+2t)^4} which I factored to 0 =\frac{ (2t)(-3-2t^3+t^4)}{(1+2t)^4} and set 2t = 0 or t^4-2t^3-3 = 0 How am I supposed to factor the second possibility for t? Using guess-and-check (:yuck:) with 0, 1, and -1, I...
  5. J

    Simplifying Algebraic Factoring: Identifying Patterns and Formulas

    In another thread someone showed me this identity: 1+x+y^{2}+xy^{2}=(1+x)(1+y^{2}) How does one recognize that the Left side of this equation can be factored into the form on the right? Is there some formula, or do you just have to memorize these kind?
  6. K

    Master Factoring Patterns: Ace Your Test Tomorrow with These Simple Steps!"

    Help! Factoring Patterns ok i need help asap! test tomarrow and have no clue what to do! :bugeye: i need someone to help me understand the steps! ex problem 10x[squared]+6x-28 answer 2(5x-7)(x+2) what i need to know is what steps do i take to get the answer?
  7. D

    Poly. And Factoring Questiosn I have .

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  8. S

    Two questions - factoring and exponents

    These aren't homework questions. They were on a test I had today. The first was how do I factor 2x^3-3x^2-16x-5. I'm fairly certain that's right. It was actually part of a larger problem, involving finding a slant asymptote. I just used my graphing utility to find the answer, but I'd like to...
  9. H

    Solve Trinomial Problem: 2(2x^2+3x-14)

    I was working on this one trinomial problem-2(2x^2+3x-14) but I tried doing foil but I'm not sure what I am doing wrong. Could someone help me out? Thanks.
  10. S

    Factoring Fractions: Solve (x+20)(x+10)^2+400

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  11. W

    Factoring Questions: Tips & Hints for Success

    Are there any hints in a factoring question that tell you automatically if they can be factored? I have a test tomorrow dealing with the factoring of trinomials, difference of squares, and sum/difference of cubes.
  12. H

    Step-by-Step Guide to Factoring Polynomials: Solving a Tricky Problem

    I am stuck on this one polynomail factoring problem and I was wondering if someone could help me with it: 16a^2 - 24ab + 9b^2 - 25c^2 I tried factoring the first 3 terms as a trinomial but I'm not sure if that's what I'm supposed to do. What I wrote down so far is: (4a -5c)(4a...
  13. Z

    Solving a Factoring Problem in Calculus without a Calculator

    I'm in calculus, but we're having this test on some curve sketing soon and I'm doing some practice problems that the teacher gave us. We're not allowed to use a calculator in this calculus class (except for very rare instances) so we have to know how to sketch graphs with no problem! I'm...
  14. H

    Solving Trinomial Factoring Problems: Tips and Tricks"

    I asked my friends about this and they were stumped too. (a^2-5a)^2 + 8(a^2-5a)+12 Since it's a trinomial, I tried to do decomposition but it didn't work. I tried to factor out the (a^2-5a) but I end up with a different answer then on the sheet.
  15. H

    How to Factor Polynomials with Three Terms?

    I'm having trouble with this one factoring problem- x^2(a+b)-x(a+b)+(a+b) I thought it was 3 terms so I tried to do decomposition but it doesn't seem to work. If someone could just help me, I'd appreciate it. Thanks!
  16. R

    Factoring: F.O.I.L vs Box Method Comparison

    F.o.i.l or Box? What is the better method the F.O.I.L method or the (I am not sure of the offical name) box method(where you make a box with 4 squares) to factor. Are there any other methods availible?
  17. CarlB

    Orientation and Hilbert space bra / ket factoring.

    I've been thinking about the probability interpretation of quantum states. In the density matrix formalism, or in measurement algebra like Schwinger's measurement algebra, one makes the assumption that pure states can be factored into bras and kets, and that bras and kets can be multiplied...
  18. E

    Factoring Problems: Solving for Inverse-Laplace Transformation

    How can i factor this nicely, so that i can get a form to inverse-laplace transform it \frac{0.25s}{s^2+0.25s+0.25} so far i get this in denominator: (s+\frac{1}{8})^2+\frac{15}{64} after completing the square, but then the last fraction is not a square of anything... and i need a...
  19. M

    Check my answer please (factoring)

    My teacher assigned us this problem (it is for extra credit, but I'll take what I can get): P = a(b^4-c^4)+b(a^4-c^4)+c(a^4-b^4) My work: 1. P = a( (b^2)^2 - (c^2)^2 )+b( (a^2)^2 - (c^2)^2 ) + c( (a^2)^2 - (b^2)^2 ) 2. P = a[ (b^2+c^2) (b+c) (b-c) ] + b[ (a^2+c^2) (a+c) (a-c) ] + c[...
  20. A

    Help College Algebra Factoring

    Y^6+124Y^3-125 the ^ means to the power of asks to factor help
  21. A

    Need Help With College Algebra Factoring

    Y^6+124Y^3-125 the ^ means to the power of asks to factor help :biggrin:
  22. A

    Need help in factoring algorithms

    Rsa200, The 200 digit RSA challenge no is factored on may 9. The German researchers, RSA has reformulated its challenge and now expresses numbers in bits (base 2) instead of decimal (base 10) source http://news.com.com/2061-10789_3-5702146.html
  23. A

    Factoring polymonial with complex roots

    This may be a bit silly but i forget how to factor this into complex factors: s^2 + 6s + 25 i know the answer is (s +3 - i4)(s +3 - j4) but how do i get that?
  24. A

    Factoring x^5+x+1 Using Modulo - A Guide

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  25. D

    Factoring Large Numbers: Challenges and Solutions

    CAn anybody help me with this problem. I am trying to factor 2^{128}+16+1 My version of MATLAB can't handle such big numbers, although I have managed to find some small factors. The problem is the larger factors, of which I don't know whether are even prime. If anyone has a good...
  26. P

    Need Help Factoring This Equation?

    Hello All, Just trying to figure out how to factor the following problem. x^2 + 5 + 6/(x^2) Can anybody help me?? Thanks P
  27. E

    Two questions involving factoring

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  28. I

    Factoring Pattern for ax^2 + bx + c

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  29. G

    Which method is the most efficient for factoring polynomials?

    What is the fastest and easiest way to factor these? ex. 3x^2+8x-3
  30. S

    Proving Irrationality of \sqrt[3]{3}

    Hello all, Prove that \sqrt[3]{3} is irrational. Heres what I have so far: \sqrt[3]{3}=\dfrac{m}{n} 3=\dfrac{m^3}{n^3} m^3=3n^3 Now, I think I am to assume that there is more than one factor of three on the right, or something, I don't know. Can someone point me in the right...
  31. R

    Factoring irrational equations

    Ok, I hope there’s a math wiz out there who can help me. I have to factor: f (x)=3x^4-8x^3-5x^2+16x-5 Just from looking at it, you know that possible values for x are: ±1, ±5/3, ±1/3, ±5 However, if you plug in these real numbers, none of them work, therefore meaning that x is an...
  32. H

    Word Problems(might involve factoring)

    Im having a bit of trouble with these: 1). Seven less than 4 times the square of a number is 18. Find the number. 2). Find two consecutive integers whose product is 56. 3). Find two consecutive positive odd integers whose product is 35.
  33. quasar987

    How Do I Solve This Limit Using Factoring X Out?

    I Have No Clue How To Start This One. I Tried Applying The Same Kind Of Strategy As In https://www.physicsforums.com/showthread.php?t=51562 But No Luck. Please Give Me A Hint. \lim_{x\rightarrow 0}\frac{\sqrt[4]{1+x^2}-1}{x} Factoring X Out Gives A \infty - \infty Undeterminate Form. The...
  34. O

    Simple square root factoring question

    Hi, is \sqrt{a^2-a^2\sin^2{x}} = a\cos{x}? If not, what should it be? :confused: Appreciate the help! :smile:
  35. J

    Need help with a generalized formula for factoring

    Hello, I’ve come upon a problem in my transitional mathematics course, wherein I need to prove a generalized formula for the factorization of X^n-Y^n where the first term is (X-Y). I have deduced a formula making use of the summation of X*Y over the range of positive integers ending at n...
  36. C

    How Do I Solve Polynomial Equations with Real and Complex Roots?

    Given: s(t) = 1/2t^3-5t^2+3t+6 I'm trying to find all values of t where s(t) = -30 My first thought is to solve for 0 hence: 1/2t^3-5t^2+3t+36=0 I know the answers are t=4 and t=8.196 but I can't get to it...I'm assuming I need to factor this down but I'm can't see it. Any...
  37. J

    Factoring of addition?

    "Factoring" of addition? Is there a name for "factoring" addition? For example...let's say I'm working in a basis of all integers greater than 3. I can make 7 from 3+4; 8 from 4+4 or 3+5; 9 from 3+3+3 or 4+5 or 6+3... Is there a name for this? And if so...are there computer programs that...
  38. S

    Factoring dilutions into calculations

    Hey guys, gals (Monique :wink: ) Quick question. I recently completed a labortatory session in my Genetics class regarding the isolation and analysis of plasmid DNA, and a section of the report has me stumped. Before the plasmid DNA was put under the spectrophotometer, it was diluted in...
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