The History of Factoring
Factoring is an ancient function found as far back as Babylonian times. The Babylonian Code of Hammurabi covered certain trade practices of merchants' agents who guaranteed trade credits. This was the earliest recorded factoring. A Factor in early European history was defined as a representative, who looked after someone else's business affairs. A noble lord would not conduct business transactions directly with those considered beneath them and the Factor would act as go between. The Factor would convey contracts, collect and disburse funds and see to transporting goods. Prior to the 20th century, a Factor was a business agent whose