The nature of trade receivables was first described in the Code of Hammurabi back in 1750 B.C. Item 104 of the code of laws says “If a merchant gives to an agent grain, wool, oil or goods of any kind with which to trade, the agent shall write down the value and return (the money) to the merchant. The agent shall take a sealed receipt for the money which he gives to the merchant”. In other words, when a seller delivers goods to a buyer, the former doesn’t get paid right the moment; instead, he obtains a right to get the payment after the subsequent sell of the goods.In modern trade finance terms such a right is called “trade receivable”.

Some economic historians argue that factoring appeared in ancient Rome when local wealthy merchants attracted middlemen (factors) to assist with sale and delivery of goods. We know for sure that American colonists in the 17th century resorted to factors’ services when exporting from America to England. Second half XX century textile manufacturing boom in the United States and growing trade in the United Kingdom have shaped factoring. The world factoring market had reached 2.4 trillion EUR in 2016.