Factoring measures the liquidity of accounts receivable and is calculated as net credit sales divided by net accounts receivable.

Factoring is the business of purchasing receivables from companies upon a fee for the services performed to manage and collect receivables.

Factoring is the average amount of time that a receivable payment is outstanding and is calculated as 365 days divided by receivable turnover ratio.

Factoring is a trend line of the proportion of customer sales that are paid at the time of sale, noting the payment type used.

Factoring a written agreement or a commitment to pay a particular amount of
promised money at a particular period of time.