![]() ![]() The term derives from the Latin for "doer, maker", from facit, "he/she/it does/makes". ![]() A debt factor, whether a person or firm (factoring company), accepts as assignee book debts ( accounts receivable) as security for short-term loans this is known as factoring. A factor has a possessory lien over the consigned goods that covers any claims against the principal arising out of the factor's activity. In the United Kingdom, most factors fall within the definition of a mercantile agent under the Factors Act 1889 and therefore have the powers of such. Most modern factor business is in the textile field, but factors are also used to a great extent in the shoe, furniture, hardware, and other industries, and the trade areas in which factors operate have increased. A factor differs from a commission merchant in that a factor takes possession of goods (or documents of title representing goods, such as a bill of lading) on consignment, but a commission merchant sells goods not in their possession on the basis of samples. A factor is a mercantile fiduciary transacting business in their own name and not disclosing their principal. Admiralty lawĪ factor is a type of trader who receives and sells goods on commission, called factorage. For chief factors in group theory, see Chief series. ![]()
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