factoring

/ˈfæktərɪŋ/
noun
  1. The process of breaking a number or expression into its factors (numbers or expressions that multiply together to give the original).
    • Factoring is an important skill in algebra class.
    • Many students find factoring easier once they practice with simple numbers.
    • The teacher explained factoring by showing how 12 can be written as 3 × 4.
  2. A financial service where a business sells its unpaid invoices to a third party at a discount for immediate cash.
    • The bank offered factoring services to companies that needed working capital.
    • Factoring can help a business manage its cash flow during slow months.
    • The small company used factoring to get quick cash instead of waiting for customers to pay.