Definition:
Specialised financial company (a person or firm), which buys debts (accounts receivable) of seller's customers and does additional services (execution of debts, admonishing of debtors delayed with paying debts, vindication of dues, periodic investigation of legal-economic situation of debtors, conducting of settlements between debtors and the user of factoring company, accounting services). Depending on how the factor (factoring broker) is setup, he may take them to an open market or may present them directly to a specified group of companies that he does business with. The broker himself does not purchase your receivables, but merely acts as an agent to find someone who will.