HISTORY OF FACTORINGThe evolution of a rich traditionFactoring is almost as old as commerce itself. This financial practice can be traced back 4,000 years to the time of Hammurabi. Factoring was the dominant form of finance used in the American colonies before the Revolution, with factors also acting as sales agents for British and European textile mills. Eventually, factors stopped acting as sales agents and specialized in credit and collection services while still focusing on the textile industries. In the 1930s, factors began to expand their businesses beyond textiles. The move toward serving a broad range of industries continued through the 50s and 60s; today, factors operate in virtually all business arenas. Until the 1960s, factors were usually independent entrepreneurial operations. Over the past few decades, a trend toward consolidation has created two distinct tiers of factors: a few dominant, large, institutional-owned factors; and a number of smaller, independent factoring firms. Over the past few decades, a trend toward consolidation has created two distinct tiers of factors: a few dominant, large, institutional-owned factors; and a number of smaller, independent factoring firms. Please feel free to contact us by
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