A factor is a restriction lenders impose on borrowers as a condition of providing long-term debt financing.

Name: A factor is a restriction lenders impose on borrowers as a condition of providing long-term debt financing.
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A factor is not a restriction; it is a financial intermediary that purchases receivables from a company to provide immediate cash flow. Restrictions imposed by lenders are typically referred to as covenants.

A Factor Is a Restriction Lenders Impose on Borrowers as a Condition