History of factoring...

History of factoring

Factoring has a long history dating back to ancient civilizations such as Mesopotamia and Rome, where merchants would sell their invoices to wealthy individuals or companies in order to obtain financing. However, modern factoring as we know it today started to emerge in Europe during the 16th century, when factors would provide financing to textile merchants in Venice and other trading centers.

In the United States, factoring became more common during the 19th century, when factors would provide financing to businesses in the textile, agriculture, and transportation industries. Factoring played a key role in the growth of these industries, as it allowed businesses to obtain financing quickly and without having to wait for customers to pay their invoices.

Today, factoring is a common form of financing for businesses of all sizes and industries. It has become more sophisticated over time, and now includes a range of services such as credit analysis, collections, and risk management.

Here are some links for further reading on the history of factoring:

Factoring in Ancient Times: https://www.investopedia.com/terms/f/factoring-history.asp

History of Factoring in Europe: https://www.ifactorfactoring.co.uk/factoring/history-of-factoring

Factoring in the United States: https://www.anytimecollect.com/blog/the-history-of-factoring-in-the-united-states/

The Evolution of Factoring: https://www.americanbanker.com/opinion/the-evolution-of-factoring