Invoice FactoringA brief history of invoice factoring and its uses in today's business environment
Factoring date back over 4000 years to Mesopotamia, the 'cradle of civilization.' Besides developing writing, business
codes and government regulations, the Mesopotamians introduced factoring to the business world. Today, factors
exist in all shapes and sizes and service a wide range of business-to-business industry segments. Ironically,
factoring is not being taught in business college, seldom seen in business plans, and one of the best kept
secrets in the business community. To those in the know, factoring has often meant the difference between growth
Simply put, factoring is the process of purchasing commercial accounts receivable (invoices) from a business at a
discount. In other words, the factoring company buys your invoices for less than face value and gets paid in full by
your customers. The difference between the discounted rate and the face value is the factor's profit or incentive
for buying your invoice.
With financing sources for small business owners becoming tighter and more restricted, invoice factoring becomes
an ever more viable option for business financing. Whether it is to fuel an expansion, buy new equipment, raise
immediate working capital or ease cash flow problems, factoring can often offer a practical and instant solution.
If you sell products or services to businesses, if your customers have good credit, and if you have current orders
that you are ready to ship, invoice factoring might be of great benefit to you and your company.
If you are interested in invoice factoring for your company, or would just like more information on whether invoice
factoring is right for your business, click her to apply online; an IFG consultant will be in touch with you shortly. Alternatively, please ring IFG on 1 800 937 312.