The history of invoice factoring goes way back to the times of King Hammurabi of Mesopotamia, over 4000 years ago. It has been playing an active role in business finance since then. From medieval businessmen to English colonists – and from garment textile industries to transportation industries – invoice factoring has a long history.
Today, with some banks limiting loans to small businesses, invoice factoring has emerged as an increasingly popular means of alternative finance. Since factoring advances money on invoices owed to a company, it’s not technically “credit.” So businesses can get their hands on much needed cash flow quickly, without going through some of the traditional bank loan underwriting activities.
To read the original article: Invoice Factoring Growth up to the 21st Century
