### Question
What does factoring discount mean?


### Answer
**Factoring discount** has the following meaning in *26 U.S.C. § 5891*:

> an amount equal to the excess of—


(A) the aggregate undiscounted amount of structured settlement payments being acquired in the structured settlement factoring transaction, over


(B) the total amount actually paid by the acquirer to the person from whom such structured settlement payments are acquired

#### Citation:
  - *26 U.S.C. § 5891*
  - Heading: **Subtitle E-Alcohol, Tobacco, and Certain Other Excise Taxes > CHAPTER 55-STRUCTURED SETTLEMENT FACTORING TRANSACTIONS**

