On Demand!

With invoice factoring, the sub-contractor or construction firm can realize quick turnaround (often within 24 hours) on accounts receivable due for completed stages of a construction project.

Invoice Factoring For Small Businesses

You probably know by now about something called the America’s Recovery Capital program offered by the Small Business Administration. Thus far, to date nationwide, 6,340 businesses plus were receiving the SBA ARC loan. Created in last year’s stimulus package, the ARC loan offers limited help to small businesses hurt by the credit crunch and recession. The program will run until the funds are gone, or through late September 2010.

But here’s something even more encouraging than the ARC loan. Invoice factoring has been helping businesses for thousands of years. Factoring dates back 4,000 years to King Hammurabi ([1795-1750 BC]), who was the king of the ancient culture of Mesopotamia. He established the world’s first metropolis also known as Babylon. It was these Mesopotamians who came up with factoring.

Mesopotamians eventually became an extinct civilization, but the interesting thing is that factoring remained popular. History tells us that every civilization with commerce has practiced some form of factoring, and that includes the Roman culture who were the first to sell what was known as discounted promissory notes.

First documented in the American colonies some time before the revolution, factoring took place at a time when raw materials and goods were shipped from the colonies to America by merchant bankers in Europe who advanced funds to the American colonists for materials. Banks did not exist back then. Factoring enabled the colonists to continue to harvest their new land and they were not under any obligation to wait to be paid.

It was during the Industrial Revolution when factoring became more focused on credit, as factors guaranteed payment for approved customers. Before 1930 in the United States, factoring occurred primarily for the textile and garment industries, and then after the war years, factoring expanded to other types of business. Factoring became popular when interest rates rose during the 1960’s and 70’s, intensifying in the 80’s due to
the increasing impact of interest rates and changes in the banking industry. It was at this time when small businesses were forced to find other sources of financing for growth.
Today during the economic recovery, businesses will continue to use invoice factoring (factoring of accounts receivables) for growth, profit, and security.


“Services provided by IFG allowed us to capitalize on significant growth opportunities over a short period of time tripling our workforce and increasing our revenue 10 fold”

~Carol Craig / President / Craig Technologies


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