Using leading information technologies is one way to gain competitive advantage. Another critical success factor is the effectiveness and promptness of collecting from past due receivables. Like all other business, the major critical success factor is fast, high quality client and customer services. The factoring company has to respond promptly to the inquires and needs of the clients and customers. The desire of attracting new business, improving production efficiency and most importantly continuously improving clients and customer services initiates and drives the advancement of information technology in the factoring industry.
Factoring is a system intensive business.
This is because of the high volume of transactions required to be entered and the matching with such transactions of cash payments, chargebacks and other adjustments. The system has to be able to retrieve and generate reports and schedules on a timely basis. The information needed on a timely continuous basis includes payment histories and analyses of the client's customers, credit risk, aging of account receivable reports, complete data requires in the collection process, information used in marketing and information require by clients and management. Therefore, information technology is the base to achieve critical success factors in this industry. In the past decades, technology has brought both benefits and threats to the factoring industry.