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Factoring is an increasingly common method of financing. The factoring is called 'account receivable financing' in the United States and it is started out as sales agent and getting developed to 'del credere agent' who guarantee the payment. The activities of factors have been expanded to not only consignment sale and payment guarantees but also advance financing service.
However, at the end of the 19^th century, the direct sales was expanded by the development of telecommunication and transportation technology, and then the marketing service by factor was degraded, but the collection of payment and advance finance had been maintained until now and developed into today's factoring system.
Due to changes of international trade environment, most of commercial bank in Korea have to deal with export factoring as a trade finance service and it is desirable to specialize as a financing for small and medium company. As we continue to move to a global economy, factoring will establish itself as the transaction of choice.

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