Is This The Golden Age of Invoice Factoring?

Golden Age Invoice FactoringIt’s usually during this time of year where you will find a bunch of business articles that reflect upon the events of the past year or take a stab at making predictions for the next earnings period whether it be quarterly or annually. Instead of following suit and subjecting you to the same old topic I would rather take a look at…

The present state of the factoring industry.

When you hear the term “Golden Age” of something it typically represents a period of great peace, prosperity and happiness. Usually we think of periods of history in Greek and Roman mythology when civilizations thrived in the arts, literature and science. Obviously it sounds like a stretch to associate invoice factoring with the historic cultural periods of the past, but think of where we are today compared to just a few decades ago.

In the past, invoice factoring was limited to a few select industries and was generally regarded as a last ditch effort for businesses to get cash for their survival. Compare that to today where invoice factoring is now one of the most widely used forms of business financing that is embraced by small local shops to multi-national corporations across the globe.

So what has led the acceleration and widely accepted use of invoice factoring?

First let’s start with the most obvious – business owners realize that cash flow is king and it is vital for growth. A company can be profitable on paper but if they do not have consistent cash flow to fuel operations and increase sales they will never make take their business to the next level.

Next, technology has made transacting business in the factoring industry simple. Think about what the internet alone has done for the growth of factoring.

Today, with just a computer, an internet connection and a multi use printer, you can perform credit checks, file UCCs, generate agreements, notify account debtors, wire funds, receive funds electronically and anything else that can be scanned, emailed or faxed. With a bank lockbox, you can receive paper checks that are automatically deposited to your account daily then scanned so you can view them online. It’s like having a designated accounts receivable person to handle all of your receipts. For us, transparency is everything and factoring software has also come a long way in a very short period of time.

Having a good factoring software program is vital for any factoring company. Why is it so important? Besides tracking all your invoices, a good factoring program allows clients to interface with the factor allowing them to upload schedules, check balances and run a multitude of reports for accounting and finance purposes. Having a solid factoring software program can be a very cost effective tool and keep clear lines of communication between the factor and client.

Finally, as the heightened popularity of invoice factoring continues, so is the acceptability from account debtors. At our company we are fortunate to work with many Fortune 500 companies that pay us on a daily basis. These account debtors represent many diverse industries such as energy, advertising media, governmental contractors and so forth. Our experience has been nothing less than favorable when notifying and verifying these companies. Many of the larger firms pay us directly through an ACH transfer and some even have specialized departments that deal specifically with factoring companies.

For full disclosure, not all companies are accepting of factors and yes, there are times when your team will have to roll up their sleeves to get an invoice approved and fully verified. As I’ve stated in previous articles, the amount of due diligence you perform is your call since each client is unique.

Only time will tell if we are in a golden age of invoice factoring but the future looks very promising. In the meantime, be bold, venture wisely and prosper.
Factoring Company Don DAmbrosioDon D’Ambrosio is the president of Oxygen Funding, Inc., an invoice factoring company located in Lake Forest, California.

For more information, he can be reached at or you can visit his company’s website at

About Don DAmbrosio

Don D'Ambrosio assists companies with cash flow needs through invoice factoring services. You can connect with Don online through the Oxygen Funding website, LinkedIn or Google+


  1. Excellent Article, and Timing is Everything when it comes to trends, and opportunities in business. I am so glad I am at the right place and at the right time. Factoring as my choice of business transitioning from Real Estate, has been the best decision I’ve ever made for myself in my business. I am extremely excited about the prospects of helping businesses, entrepreneurs and expanding on the international level. Marketing, Marketing, Marketing and Networking, Networking, Networking is key. My future is beginning to look amazing.

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