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“Services provided by IGF 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
INVOICE FACTORING
A brief history of invoice factoring and its uses in today's business environmentFactoring dates back 4000 years to Mesopotamia, the 'cradle of civilization.' Besides developing writing, business
codes and government regulations, under the reign of Hammurabi, the Mesopotamians introduced factoring to the
business world. By the time of the American revolution, the colonies were reliant on factoring by England to sustain
their harvests of cotton, furs and timber. As America grew, so too did factoring. By the 1930's, invoice factoring was
standard business practice in the garment and textile industries. Today, factors exist in all shapes and sizes and
service a wide range of business to business verticals. Ironically, factoring is not being taught in business college,
seldom seen in business plans, and one of the best kept secrets in the business community. To those in the know,
factoring has often meant the difference between growth and failure.
Simply put, factoring is the process of purchasing commercial accounts receivable (invoices) from a business at a
discount. In other words, the factoring company buys your invoices for less than face value and gets paid in full by your customers. The difference between the discounted rate and the face value is the factors profit or incentive for buying
your invoice upon submission.
With financing sources for the small business becoming tighter and more restricted, invoice factoring becomes an
ever more viable option for business financing. Whether it is to fuel an expansion, buy new equipment, raise
immediate working capital or ease cash flow problems, factoring can often offer a practical and instant solution.
If you sell products or services to businesses, if your customers have good credit, and if you have current orders
that you are ready to ship, invoice factoring might be of great benefit to you and your company.
If you are interested in invoice factoring for your company, or would just like more information on whether invoice
factoring is right for your business, click here. An IFG Network representative will be in touch with you shortly.
You may also call the IFG Network corporate headquarters at 877-210-9748.
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