A vertical file has drawers that extend from the short side (typically 15 inches)of the cabinet. A lateral file has drawers that extend from the long side (various lengths) of the cabinet. These are also called side filers in Great Britain.

Horizontal file

Henry Brown, an African American inventor, patented a "receptacle for storing and preserving papers" on November 2, 1886. This was a fire and accident safe container made of forged metal, which could be sealed with a lock and key. It was special in that it kept the papers separated.

Vertical file

The vertical filing cabinet (vertical file cabinet in the United States) more or less as in use today was invented by Edwin G. Seibels in 1898. He invented a vertical filing system in 1898 that revolutionized record-keeping. In that era, businesses kept papers in envelopes that were placed into rows of small pigeonholes often lining a wall from floor to ceiling. Finding and opening envelopes and unfolding papers was troublesome and inefficient. Seibels reasoned that folding was not necessary; papers could be kept in large envelopes standing on end vertically in a drawer.

The Globe–Wernicke Company of Cincinnati made five wooden filing boxes to his specifications, and he applied for a patent; however, Seibels was told the system was an idea; only a device could be patented. "It was pointed out that by simply varying the size, a filing box could be made which would not infringe my patent," he said. "Unfortunately, I overlooked the part played in setting the envelopes upright, and separating them by guide cards. This device, of course, could have been patented."

Thirty-nine years later, the manufacturer presented him a bronze plaque recognizing his "pioneer work" and stating, "Business throughout the world has been helped by this idea and on it is founded an industry that provides employment for many men and women." At the Smithsonian Institution's request in 1941, Seibels deposited one of his original filing boxes in the museum's collection.

After World War II, the Home-O-Nize Company was established in Muscatine, Iowa to provide returning veterans with jobs. Founded to produce steel kitchen cabinets, the company soon encountered the reality of the limited availability of steel. So the company began to make products for others. Finally a small amount of steel was secured and the company started manufacturing steel index card boxes. Soon after, larger cabinets began to be produced including filing cabinets. By designing to minimize the amount of steel, the product was an extremely cost-effective design and had huge commercial success. Home-O-Nize never did make kitchen cabinets and in 1961, the company name was changed to HON. Today, The HON Company, a division of HNI Industries is the predominant North American manufacturer and marketer of filing cabinets.