factor

At common law, a commercial agent, employed by a principal to sell merchandise consigned to him for that purpose, for and in behalf of the principal, but usually in his own name, being entrusted with the possession and control of the goods, and being remunerated by a commission, commonly called "factorage."

A commercial agent to whom the possession of personalty is entrusted by or for the owner, to be sold, for a compensation, in pursuance of the agent's usual trade or business, with title to goods remaining in principal and the "factor" being merely a bailee for the purposes of the agency. Neild v. District of Columbia, 71 App.D.C. 306, 110 F.2d 246, 259.

A firm (typically a finance company) that purchases a firm's receivables at a discount and is responsible for processing and collecting the balances of these accounts. Financier who generally lends money and takes in return an assignment of accounts receivable or some other security. In re Freeman, C.A.N.J., 294 F.2d 126, 129, 131.

See factoring.

See also commission merchant

- jobber.

Any circumstance or influence which brings about or contributes to a result such as a factor of production. Broker and factor distinguished. A factor differs from a "broker" in that he is entrusted with the possession, management, and control of the goods (which gives him a special property in them); while a broker acts as a mere intermediary without control or possession of the property. A factor may buy and sell in his own name, as well as in that of the principal, while a broker, as such, cannot ordinarily buy or sell in his own name