Can anyone explain the meaning of Factor in the below sentence.

They could factor the receivables of the various subsidiaries located outside of Canada,

To factor in this sense means to sell, at a discount, receivables. In other words if one of your customers owes you money, you may prefer not to wait for him to pay, and sell that receivable to a specialize factoring house who will discount the invoice or receivable, in other words give you a percentage of the money that is owed to you immediately and then collect the full amount from the payee. Try googling “factoring house”.