So, you know about how the factoring industry operates today—but where did it all begin? Learn about the history of factoring from the specialists a United Capital Funding. We’re the factoring company you can trust with your capital.
Where Did It All Begin?
You may not believe it, but factoring begins long before you might think. In fact, the earliest practices were found in Babylonian and Mesopotamian times. That’s nearly 5,000 years ago! However, the first debt collectors didn’t appear until the Roman era, where they received a commission up to 1% from the debtor. As their grand empire grew, so did the idea of factoring. From this growth, we get the origins of “factoring” from the Latin word “facere,” which means “to make”.
After Rome fell, the practice continued well into the 14th century. From here, factoring communities appeared. It was an early form of banking and has since evolved. The practice specifically evolved to the United States through our country’s origins: The Mayflower. Pilgrims factored their finances for the ship and the voyage to the New World.
Factoring continued well into the 19th century. At this time, factoring had a big sector in the United States. Factors backed by European entities were formed in New York and port towns like Boston and Charleston had Factors act as a trade channel for the active industries of that century.
Post-Civil War era factoring saw a shift in how Factors handled its business model as businesses no longer needed Factors to handle storage, selling and delivery, this led to the modern style of factoring that we see in today’s market.
Since that time, factoring has spread to other industries and adapted to them as needed. Thanks to the work of the past, factoring has become a trusted alternative to banking and loans.
Contact Our Factoring Company Today!
Factoring has been a growing industry for thousands of years! Begin factoring your finances with the professionals at United Capital Funding. Have a question about how things work when you contract us? No worries. UCF is here to answer any question you have for us. Send us a message or give us a call at 866.647.2680. On the other hand, if you’re ready to begin, fill out an application with us. We’re excited to work towards a better future with you!