Long-term borrowing is mainly aimed at the situation that some companies borrow from banks or other financial institutions for a long period of time. When factoring business takes a long time, long-term borrowing can be recorded.
Factoring business evolved from export to trade agency, and originated from British wool industry in14th century. At that time, British wool textiles were commissioned by professional agents. These agents sell goods to foreign buyers and guarantee the commercial credit of buyers to exporters. At that time, due to inconvenient transportation, foreign trade business activities were relatively slow.