Origin and evolution

by yudaica2013 ·

Origin and evolution of Factoring Factoring‘s origins date back to the seventeenth century. Due to difficulties in the recovery of manufacturing (mainly textiles) that England exported to U.S., British companies began to delegate the task of selling and collecting American businessmen. Moving from one continent to another more expensive commercial operation, to which was added the lack of information about the customer. Over time, U.S. businessmen began to take the commercial risk of making sales and financial developments to British exporters. From that time until the present the factoring business in the world has steadily increased. Its growth rate is 8 per annum on average, ranging, from 1960, virtually the entire planet. At present, the number of factoring companies operating is about 2000, thus making this form of financing in one of the sources of short-term funds most used by small and medium enterprises.About 500,000 companies today are funded through the annual sale of more than 500 million bill for nearly 2,000 billion U.S. dollars. While the U.S. was a pioneer in this business, most factoring is done in Europe today . Although most of the factoring business is concentrated in the domestic factoring, ie within the country, every day is taking more importance to international or export factoring. International factoring is used by exporters or importers who sell or buy on open account or by payment documents in terms agreed.

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