Here's a brief history of factoring. Factoring is one of the fastest methods for trucking and transportation companies to raise working capital. It is actually used by almost every industry. Factoring allows trucking and transportaion companies to raise the needed cash quickly for expansion/growth, restructuring or survival!
Why wait 30-60-90 days to collect on your freight bills? Get the money from your customers now - not weeks or months from now! Factoring is converting your freight bills/accounts receivables for cash, thus allowing your company to receive the needed capital quickly! It does not require additional collateral and does not create debt!
The origin of the factoring industry has been traced to the days of the Roman Empire or even earlier, but the industry as we know it today in the United States goes back only about 200 years to the early nineteenth century. Factors evolved from U.S. selling agents for European textile mills. The European mills used the agents to sell their fabrics in the U.S. and paid the agents a commission on sales. The agents also warehoused merchandise and did the shipping for their European clients. As these selling agents prospered and became more familiar with their own customers, they began taking on the job of establishing credit terms and advancing funds to the European mills. The oldest documented factoring firm traced its roots to 1810 and several others were established in the first half of the nineteenth century.