factorage

factorage

A merchant earns a commission through factorage.

Definition
  1. Noun:
    • Commission earned by a factor: "factorage" refers to the fee or commission paid to a factor (an agent or merchant) for buying or selling goods on behalf of another person.
    • The business of a factor: It can also denote the trade or occupation of acting as a factor, involving the management of commercial transactions for a commission.
Usage Examples
  • Commission earned:
    • The merchant charged a 5% factorage for handling the sale of the textiles. (The fee for the agent’s services was 5% of the total sale.)
  • The business of a factor:
    • He made his living through factorage, representing overseas clients in local markets. (His occupation was acting as a commission-based agent.)
Advanced Usage

  • "Factorage in international trade": a specific context where factorage is applied to cross-border transactions.

    • Factorage in international trade often includes additional costs for shipping and customs clearance. (The commission covers more than just the sale; it encompasses logistics.)

  • "Factorage agreement": a contract specifying the terms of commission between a factor and a client.

    • The factorage agreement stipulated that the factor would receive 10% of all proceeds. (The contract defined the commission rate.)
Variants and Related Words
  • Factor (n): an agent who buys or sells goods for a commission.
    • The factor arranged the shipment of coffee beans to Europe. (The agent facilitated the trade.)
  • Factoring (n): a financial service where a company sells its accounts receivable to a factor at a discount.
    • The business used factoring to improve its cash flow. (The company sold its invoices for immediate payment.)
Synonyms
  • Commission: a fee paid to an agent for services.
  • Brokerage: the fee charged by a broker for arranging transactions.
  • Agency fee: a payment for acting as an agent in a transaction.
Related Idioms

  • "Sell on factorage": to sell goods through a factor, paying a commission.

    • The farmer sold his harvest on factorage to a local agent. (The farmer used an agent to sell the crop, paying a commission.)

  • "Factorage in kind": a commission paid in goods rather than money.

    • The trader accepted factorage in kind, receiving a portion of the produce. (The agent was paid with goods instead of cash.)