Factoring: America’s Foundation

They always say that everything old becomes new again.

Perhaps, there is no place that this is truer than in factoring.

Day after day, I explain what factoring is, and invariably, we’re treated as a relatively new financial product.  Which, in a way, we are:  For the construction industry, factoring is indeed a relatively new option.

Factoring itself, however, is older.

Much older.

Old enough, in fact, that it was already an established financial product by the time the pilgrims were ready to make their voyage on The Mayflower.

…

“Back in the day” the pilgrims faced many of the same financial concerns business owners today do.

Impressed by their honest and hardworking nature, a British factor by the name of Thomas Weston entered into a factoring agreement with the first pilgrims, giving them the financing needed to secure The Mayflower.

Then, upon their arrival in Massachusetts and satisfaction of all obligations with Mr. Weston, they entered into another factoring agreement with London financiers to sell their goods to the Indians and European fishermen.

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Personally, I’m still waiting for my work to prove quite this formative to the American economy.  Funding The Mayflower would make far better party conversation than stories about convenience store parking lots. Still, it’s been a great 400 year run for factoring in America, and I look forward to making sure the next 400 are even better.