A
factor, Latin for "doer, maker" (from Latin
facit, "to do, make"), is a mercantile
fiduciary who receives and sells
goods on
commission (called factorage), transacting business in his own name and not disclosing his
principal, and historically with his seat at a
factory (trading post). A factor differs from a commission merchant in that a factor takes
possession of goods (or documents of title representing goods) on
consignment, whereas a commission merchant sells goods not in his possession on the basis of samples. Most modern factor business is in the textile field, but factors are also used to a great extent in the shoe, furniture, hardware, and other industries, and the trade areas in which factors operate have increased.