Undisclosed factoring

Updated: Aug 20, 2021

A type of factoring used by a trader who prefers that the public, or those with whom he deals, are not aware that he is making use of such facilities. Technically, the distinction is that the factor, rather than buy the debts, buys the goods and appoints the seller to resell and collect payment on his behalf. The trader is the agent and the factor the undisclosed principal. The factor is responsible for bad debts; the commission charged will vary.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.