why we use factor account in payable while doing setup in supplier?

Hi,

I am little bit confuse when I read about factor account, can someone brief me about factor account in payable and when we use this features and how it differs from third party payment.

what I read about Factor account is below:

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If a supplier sells receivables to a factor, you can enter invoices for the supplier and make payments to the factor by creating a pay site defined for the factor. Factor is a person to whom a Buyer makes a payment instead of a Supplier. This is performed by creating a Factor Bank Account from the Banking Details tab on the Create Supplier window. As a result when an invoice is entered for the Supplier in the Remit to Bank Account the Account of the Factor is shown. When an invoice is entered for the supplier in the Remit to