D.C. based attorney David Tatge helped author a comprehensive book on called American Factoring Law. As a companion to this volume he has prepared this 30 page Introductory Discussion on The History Of Factoring focusing on an overview of the roots of early American factoring, with principal emphasis on the business practices of textile, corn and hop factors in England in the 14th-17th centuries.
The history of invoice factoring can be traced back to the Mesopotamians, who are credited with being the cradle of civilization and the first to generate business code structures and government regulations for commerce. Experts have evidence that proves 4,000 years ago, the Mesopotamians also created the concept of factoring. Following Mesopotamia, there is evidence that the Romans sold promissory notes at discounted prices. Roman merchants also enlisted the services of collectors to settle trade debts. But factoring as we know it today got its start in the Middle Ages.
You can read the entire History here and become an expert on how factoring originally started.