Factoring has a long and rich tradition, dating back 4,000 years to the days of Hammurabi. Hammurabi was the king of Mesopotamia. In addition to Mesopotamia’s getting credit as “the cradle of civilization,” they also were the first to develop writing, put structure into business code and government regulation, and they came up with the concept of factoring.

After a while, the Mesopotamians went the way of extinct civilizations, but factoring endured. Almost every civilization that valued commerce has practiced some form of factoring, including the Romans who were the first to sell actual promissory notes at a discount.

In the American colonies, the first use of factoring occurred long before the revolution. During this time, cotton, furs and timber were shipped from the colonies. Merchant bankers in London and other parts of Europe advanced funds to the colonists for these raw materials, even before they reached the continent. This enabled the colonists to continue to harvest their new land, free from the burden of waiting to be paid by their European customers. So, just as today, the "factors" of colonial times made advances against the accounts receivable of the producers, enabling them to continue with their operations, long before their customers actually paid.

Prior to the 1930's, factoring in this country occurred primarily in the textile and garment industries, as the industries were direct descendants of the colonial economy that used factoring. In the 1950s, with most banks’ loan programs becoming too expensive and too inflexible due to heavy regulation (remember the Savings and Loan crisis?), the small businessperson was forced to find other sources of financing for expansion and growth. Factors saw the potential to bring factoring to other forms of invoice-based business and the expansion began. Today, factors exist in all shapes and sizes: as divisions of large financial institutions or, in larger numbers, as individually owned and operated entrepreneurial endeavors.

Approximately 10 years ago a unique twist on traditional invoice-based accounts receivable factoring developed. A small number of factors began to offer cash advances based on future credit card sales. Omni Capital Solutions, through our long standing relationship with CashReady International continues to help small to medium size merchants leverage their future credit card sales to provide needed capital for expansions, advertising, new product lines, etc…

If your business takes credit cards as a form of payment, let Omni Capital Solutions provide you with the answers to your questions and a CASH solution to your capital needs!

To discover how much cash we can send to you, just fill out our secure online form. Your approval notification will be sent back to you within as little as 48 hours.