AFA’s Response to John Oliver Show - JG Wentworth is Not a Factoring Company

In response to a wholly inaccurate portrayal of the factoring industry writ large by John Oliver on the “Last Week Tonight” show, the American Factoring Association (AFA) issues the following statement:  

“Factoring is one of the oldest forms of financing in the world. However, despite existing for thousands of years, John Oliver decided not to do his homework and instead railroad an entire industry that has helped countless small businesses with their access to capital needs. These small businesses are run by entrepreneurs with a dream but unfortunately, their businesses are not bankable for a variety of reasons and factoring is a service that provides them with access to capital to grow their business or keep the lights on.   

Commercial factoring is a business buying a real invoice from a real customer for a good that has been delivered or a service that has been performed.  Factors do not take money from their clients but rather put money into their client’s bank accounts.  Factors are not predatory and the American Factoring Association exists in part to support best practices within the industry.   

Factors engage in business-to-business transactions. They do not engage in personal or consumer transactions.  Had Mr. Oliver done an ounce of background research or called the AFA, he would have discovered that fact. Factors do not prey on personal injury victims.  It is also worth noting that JG Wentworth is not a factoring company, nor are any of the other companies named during the segment.  In fact, on Wentworth’s website, it states the company is “helping consumers…”  Whatever transactions JG Wentworth is conducting are not factoring transactions.  

Finally, there is an entire eco-system of factoring clients that exist in the U.S. and throughout the world. Clients run the gamut of industries, from construction subcontractors, trucking companies, staffing firms, small businesses in your neighborhood, manufacturers, and more; business owners who are growing too fast for traditional lending and need working capital to make payroll and take the next job.  The AFA would be happy to connect with Mr. Oliver or others who are curious about how factoring actually works and how it underpins the success of the U.S. economy.”