The History of Factoring
The concept of factoring was born over 4000 years ago, when traders from Mesopotamia (current-day Iraq and neighboring countries) began granting some form of credit to their customers.
Then, the ancient Greeks started recording debts on papyrus, an ancient paper; the ancient Romans refined the factoring trade and collected fees from debtors.
During the Industrial Revolution in the 1800s, as trade expanded throughout the United States and Europe, factoring became more common, and non-recourse was available on creditworthy debtors.
Until the mid-1980s, many believed that accounts receivable factoring was primarily limited to the textile and garment industries. However, today, factoring has become a widely utilized and effective financial solution for businesses that extend credit terms to their customers.
Today, factoring continues to be an integral part of business. Many companies may not survive without it.
Factoring provides essential liquidity, allowing businesses to manage cash flow effectively and invest in growth opportunities.
As a result, factoring has evolved to serve a diverse range of industries, from manufacturing and staffing to technology, transportation, services, and others, helping companies navigate the difficulties associated with modern commerce and the challenges associated with unpaid invoices.
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For additional information on how factoring can benefit companies that extend credit to their customers or seek to enhance their cash flow, please reach out to us using this simple form. A member of our team will respond to you promptly.
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