Why We’ve Called Our Blog “The F Word”

Factoring is a bad word.

Or so the finance industry would have you believe.

Invoice factoring is one of the oldest forms of financing. It dates back to the 15th century—and some believe even further back in history—to the time of the Silk Road. Vendors would sell their wares to customers buying in bulk, only their customers couldn't afford bulk prices until they resold the product. So, the vendors turned to lenders who paid them upfront and waited to collect from the buyers once they had generated revenue from their sales.

And so, cashflow financing was born.

Hundreds of years later, factoring is a multi-billion dollar industry in Canada and the United States. Yet, it is still seen by many people across multiple industries as a form of financing offered by lenders of a last resort. These negative views towards factoring stem from the 90s and early 2000s, when companies—that were turned away from traditional lenders such as banks—had no choice but to look for alternative financing options which were more expensive, less mainstream, and ultimately seen as less desirable.

This false perception of factoring has persisted until this day, which is why we’ve decided to call our blog The F Word. Factoring isn’t a bad word or a bad service—it is our aim to dispel any misconceptions about cashflow financing and the factoring industry through educational content on our blog.

Companies like ours are redefining what it means to access capital to support business growth when traditional lenders aren’t an option. Over the last five years, we’ve helped over 1,200 small businesses get the financing they need so that their business can grow. By providing clients with faster access to their own money, we are facilitating growth, enabling success, and helping to shape the future of cashflow.