American Factoring Association

What American Factoring Association does

The American Factoring Association (AFA) is a non-profit 501(c)(6) trade association incorporated on August 4, 2009, in California, in response to the 2008 financial crisis. Its stated purpose is to prevent the factoring industry from becoming collateral damage of post-crisis legislation and to educate public policymakers on the role of working capital financing for U.S. small businesses. The AFA describes itself as the sole body representing the factoring industry in Washington, D.C., conducting advocacy and education efforts aimed at lawmakers and federal regulatory agencies.

The AFA's core service offering is legislative and regulatory advocacy, supplemented by free member webinars, monthly industry newsletters, state disclosure-law compliance resources, and standardized SBA subordination agreement templates. The organization does not build or sell a technology product; it operates an advocacy and member-engagement platform supported by basic website, email, and webinar infrastructure. It has conducted over 200 meetings with U.S. Senators, Congressmen, and federal regulators including the Treasury Department, CFPB, FDIC, OCC, and the Federal Reserve, and has secured tangible policy outcomes (e.g., reducing a proposed surety bond increase for freight brokers by one-third in 2012, and obtaining a CFPB staff recommendation that factoring should not fall under Section 1071 of Dodd-Frank).

The AFA is funded almost entirely through tiered membership "Fair Share" contributions based on member portfolio size, ranging from under $500 ("Other") to $10,000+ ("Diamond"). Named membership categories include Diamond, Platinum, Gold, Silver, and Bronze, with 80+ identified member organizations across factoring companies, law firms, and related service providers. The organization is governed by a volunteer Board of Directors drawn from member companies, with a small paid executive function (Executive Director Tania Daniel, who also leads the International Factoring Association). Headcount is reported at 1-10, and headquarters are at 1015 Nipomo St, Ste 210, San Luis Obispo, California.

Name

American Factoring Association

Legal name

American Factoring Association

Website

https://americanfactoring.org

Company type

Private

Founded year

2009

Operating status

Operating

Headcount range

1–10 employees

Short description

The American Factoring Association is a non-profit 501(c)(6) trade association founded in 2009 that serves as the sole advocacy body for the U.S. factoring industry in Washington, D.C., funded by tiered membership donations from factoring companies and related service providers.

Ownership category

akta.pro rank

Headquarters

HQ city

Avila Beach

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. Membership Contributions/Donations: The AFA generates revenue through tiered membership contributions based on portfolio size. Companies are invited to donate according to a 'Fair Share' suggested donation schedule ranging from $500 to $10,000 annually based on their portfolio size. The organization is a non-profit 501(c)(6) corporation.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

The American Factoring Association (AFA) is a non-profit 501(c)(6) trade association that represents the U.S. factoring industry. It provides legislative and regulatory advocacy before Congress and federal agencies, free educational webinars, monthly industry newsletters, state disclosure law resources, and standardized SBA subordination agreement templates to its members. Services are funded through tiered membership contributions based on portfolio size.

Product overview

The American Factoring Association (AFA) is a non-profit 501(c)(6) trade association that serves as the primary advocacy and educational organization for the factoring industry. Rather than offering a commercial product platform, the AFA provides a bundle of membership services including legislative advocacy before Congress and federal regulators, free educational webinars for members, monthly industry newsletters, state disclosure law compliance resources, and standardized SBA subordination agreement templates. These services are funded through membership dues at various tiers (Diamond, Platinum, Gold, Silver, Bronze) based on portfolio size.

Differentiator

Problem solved

Functional benefit

Products and services

• Advocacy Services
• Educational Webinars
• Industry Newsletters
• State Disclosure Information Resources
• SBA Subordination Agreement Resources

Quantifiable outcome

• Reduced proposed surety bond increase for freight brokers by one-third in 2012, preventing up to 15,000 freight brokers from being driven out of business
• +4 more outcomes

Named customers9 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Seven partnerships are on record, tiered core and minor.

• Small Business Administration (SBA)coreStrategic or Co-development Partner · 1 January 2022The AFA worked closely with the SBA on a new standardized subordination agreement to address concerns making the existing agreement unworkable for the factoring industry. The SBA approved the revised agreement with key changes including expanded collateral coverage (inventory, general intangibles, proceeds), first priority security interest clarification, and modified default notification requirements.
• U.S. Department of TreasurycoreStrategic or Co-development PartnerThe AFA worked with the Treasury Department on a report on factoring that has been very helpful in subsequent advocacy efforts. This relationship has supported the organization's regulatory engagement strategy.
• Consumer Financial Protection Bureau (CFPB)coreStrategic or Co-development PartnerThe AFA spent over three years developing a good working relationship with the CFPB's team implementing Section 1071 of Dodd-Frank. As a result of this engagement, CFPB staff indicated that factoring should not be covered by Section 1071 provisions. The relationship was developed through consistent engagement to protect industry interests.
• Federal Deposit Insurance Corporation (FDIC)coreStrategic or Co-development PartnerThe AFA has met regularly with the FDIC at the most senior levels to educate bank regulators regarding the prudence of factoring operations. This is critical for factors with bank lines of credit to prevent adverse loan classifications by bank examiners.
• Office of the Comptroller of the Currency (OCC)coreStrategic or Co-development PartnerThe AFA has established regular engagement with OCC officials to educate them on factoring operations and prevent regulatory classification issues for factors with national bank credit facilities.
• Federal Reserve SystemcoreStrategic or Co-development PartnerThe AFA maintains relationships with Federal Reserve officials as part of its overall regulatory engagement strategy to protect the factoring industry's banking relationships and regulatory standing.
• International Factoring Association (IFA)minorStrategic or Co-development PartnerThe AFA maintains a link to the International Factoring Association (IFA) on its website, representing a cross-industry affiliation. Tania Daniel, Executive Director of IFA, also serves as Executive Director of AFA.

Scale indicators4 records

Recent moves6 records

Expansion highlights4 records

Broad incumbents

• Independent Community Bankers of America: Trade association for community banks with active federal advocacy on small-business lending, regulation, and examiner relationships. Comparable as a peer trade body that engages FDIC, OCC, and the Fed—agencies AFA also interfaces with on behalf of factors' banking relationships.
• Consumer Bankers Association: Trade association for retail banking institutions that engages on commercial finance, small business lending, and consumer credit regulation. Comparable as a peer Washington-based advocacy organization whose regulatory priorities overlap with AFA on bank regulation and small-business credit.
• National Association of Small Business Lenders: Trade body representing a broader range of small-business and alternative commercial lenders, including factors. Comparable as a peer advocacy organization but covers a wider non-bank lending universe beyond factoring specifically.

Direct peers

• International Factoring Association: Global trade association for the factoring industry, explicitly linked from AFA's website. Most directly comparable peer given shared executive leadership (Tania Daniel) and overlapping industry constituency.
• Secured Finance Network: Trade association formerly known as the Commercial Finance Association, representing the asset-based lending and factoring industries. Directly comparable as a peer trade body serving the same underlying factoring community with advocacy, education, and networking services.
• Factors Chain International: Global factoring industry association headquartered in the Netherlands, focused on cross-border factoring and receivables finance. Comparable as an international factoring trade body providing advocacy, education, and standards.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/american-factoring-association

Revenue estimate

Valuation estimate

Number of profiles

Profiles25 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about American Factoring Association