USD 3.57 Trillion
Factoring Services Market Size, Share, Growth Analysis, By Category(Domestic and International), By Type(Recourse, and Non-Recourse), By Financial Institution(Banks, and Non-Banking Financial Institutions), By End-use(Manufacturing, Transport & Logistics, Information Technology, Healthcare), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG40G2010 |
Region:
Global |
Published Date: March, 2024
Pages:
207
|Tables:
116
|Figures:
77
Factoring Services Market Insights
Factoring Services Market size was valued at USD 4.18 Trillion in 2023 and is poised to grow from USD 4.62 Trillion in 2024 to USD 10.27 Trillion by 2032, growing at a CAGR of 0.105 during the forecast period (2025-2032).
The global factoring services market is expanding as a result of the growing demand for alternate sources of funding for micro & small and medium-sized businesses. The use of machine learning (ML), Natural Language Processing (NLP), & Artificial Intelligence (AI) by several organizations is anticipated to lead to profitable growth potential for the factoring services over the course of the projection period. A more cooperative strategy, as banks & Supply Chain Finance (SCFs) cooperate to benefit client ecosystems, is anticipated to be introduced by the COVID-19 pandemic.
Bills receivable from the seller may continue to be funded semi-automatically. The financing can be changed if the company's revenues increase or decrease. Some of the factors contributing to the growth of the factoring services market during the forecast period include an increase in open account trade and the rapid expansion of businesses in Asia, led by China, an increase in cross-border factoring, and the rapid growth and development of factoring services in developing regions. The growing public awareness of financial technology improvements, such as government and factoring organization advocacy and activities, cryptocurrency, increased usage of digital platforms, and a rise in cross-border transactions, can be attributed to the expansion of the factoring services market.
Furthermore, the adoption of crypto-solutions has boosted transaction accuracy and secured both parties' critical and confidential information, preventing financial fraud. However, the expansion of the factoring services industry is being limited by an increase in data breaches and data privacy violations. Furthermore, the growing application of machine learning, natural language processing (NLP), and artificial intelligence (AI) is likely to provide profitable growth potential for the factoring services industry in the near future.
US Factoring Services Market is poised to grow at a sustainable CAGR for the next forecast year
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Recourse
Fastest Growth
Non-Recourse
Growth Rate
USD 3.57 Trillion CAGR
Global Factoring Services Market ($ Bn)
Country Share for Europe Region (%)
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Factoring Services Market Segmental Analysis
The global factoring services market is segmented on the basis of category, type, financial institution, end-use, and region. Based on category the market is segmented into domestic and international. based on type the market is segmented into recourse, non-recourse. Based on financial institutions the market is segmented into banks, non-banking financial institutions. Based on end-use the market is segmented into manufacturing, transport & logistics, information technology, healthcare, construction, and others. Based on region the global Factoring Services Market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Analysis by Category
In 2022, the domestic category held the biggest market share, with over 70%. The quick uptake of the factoring receivable techniques approach in significant sectors due to its efficacy can be ascribed to the segment expansion. The value of electronic invoices is also rising, which has helped to consolidate the domestic factoring market. Businesses can analyze their sales and payable invoices on a weekly or monthly basis thanks to domestic factoring. Additionally, the local segment's simple risk coverage and affordable pricing, as compared to foreign factoring, enable this segment to capture a higher market share.
The global factoring solutions market is anticipated to increase significantly over the forecast period, with a CAGR of 9.8 Regardless of their size or the industry they operate in, all businesses engaged in international trade now require the services of an international factoring company. Increased open account commerce has fueled the growth of this industry, and importers in advanced nations now see factoring as a desirable alternative to more conventional types of trade financing. A growth in global trade awareness and the relocation of industrial facilities to other countries like Vietnam, Mexico, or the Philippines, particularly in the wake of the COVID-19 pandemic in China, are also helping to expand this industry.
Analysis by Type
It is anticipated that the recourse factoring category will command a market share of over 52%. A personal guarantee from the owner is necessary for resource factoring in order to maintain liquidity in the event of bad debt and to buy back non-performing accounts receivable that the factor has acquired as collateral. The sector expansion in the recourse factoring market is attributed to a number of advantages, including cheaper costs, flexibility with regard to advanced rates, and flexibility with regard to credit standards. Businesses with reputable invoice clients that want to sell the bills at the lowest discounts use recourse factoring services. This section is commonly used by enterprises due to the smaller factor fees that companies pay and the fact that they receive the most money for invoices.
The market for non-recourse factoring is expected to grow significantly over the forecast period, with a CAGR of 9.6%, as a result of the increased demand for non-recourse factoring services among developing nations. The primary factor promoting growth is non-recourse factoring, which offers businesses complete credit certainty. Non-recourse factoring might be a wise decision for businesses with a wide clientele who want to offload the accounts receivables and clean up their balance sheet. Because the factoring provider is liable for any bad debt while employing non-recourse factoring, they have higher credit requirements. Additionally, non-recourse factoring is widely employed by truckers because they are at the bottom of the dietary supply chain & require financial security regarding payment.
Global Factoring Services Market ByType
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Factoring Services Market Regional Insights
Europe retained the majority of the market of over 55% in 2022 as a result of an increased emphasis of transport companies on export business factoring and the introduction of start-ups in factoring services from countries such the U.K., Germany, Italy, Romania, and Sweden. The EU has made major investments in manufacturing, engineering, and small and medium-sized enterprise factoring services, which have greatly enhanced market growth. Using cutting-edge technology like Blockchain, which offers greatly improved data security and smart contract capabilities, several service providers in this field aspire to automate the process. It is one of the main factors promoting market expansion in this area.
Asia Pacific is expected to experience considerable growth during the projected period, with a CAGR of 11.5%, owing to the expansion of the manufacturing sector in countries like India and other South & Southeast Asian countries. Their economies are quickly shifting from being primarily agrarian to becoming manufacturing- and export-focused, which is encouraging the growth of factoring services in the region. Several significant emerging economies, such as China, Thailand, India, and the Philippines, are located in the Asia Pacific region, and they are luring investors from developed markets that are saturated and searching for new business opportunities in the region.
Global Factoring Services Market By Region
- Largest
- Fastest
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Factoring Services Market Dynamics
Drivers
Support for Business Growth
- Factoring services can support business growth by providing the necessary working capital to fund expansion initiatives, such as increasing inventory, hiring additional staff, or entering new markets. The availability of immediate cash through factoring can accelerate growth opportunities for businesses.
Restraints
Cost of Factoring Services
- Factoring services come at a cost to businesses. Factors charge fees for their services, including discount fees based on the value of the invoices, credit assessment fees, and administrative fees. The costs associated with factoring services may be higher compared to traditional financing options, and businesses need to carefully evaluate the overall cost-effectiveness.
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Factoring Services Market Competitive Landscape
In order to grow their respective market shares, industry players are concentrating on strategic alliances and mergers & acquisitions that actively interact with both current and potential customers. To acquire a competitive edge in the market, they are also making aggressive investments in cutting-edge technology like distributed ledger & blockchain applications.
For example, HSBC UAE and HSBC India stated in 2021 that they would implement Blockchain technology to allow live financial transactions for trading purposes among Universal Tube & Plastic Industries Ltd. (UAE) & ArcelorMittal Nippon Steel India Private Limited (AM/NS India). The Blockchain-enabled Contour system, that connects to essDOCS' CargoDocs platform, handled the full end-to-end paperless transaction.
Top Player’s Company Profiles
- Wells Fargo & Company
- Banco Santander, S.A.
- BNP Paribas SA
- Deutsche Bank AG
- Societe Generale SA
- UniCredit S.p.A.
- Mizuho Financial Group, Inc.
- Commerzbank AG
- Sumitomo Mitsui Banking Corporation
- BBVA (Banco Bilbao Vizcaya Argentaria)
- ING Group N.V.
- Banco Bradesco S.A.
- Barclays PLC
- Standard Chartered PLC
- KBC Group NV
- Banco do Brasil S.A.
- Banco Popular Español S.A.
Recent Developments
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In March 2024, Tradewind Finance, a global trade finance firm, announced an additional factoring facility of EUR 35 million for one of its longstanding clients, a steel manufacturer based in Europe with operations worldwide.
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In February 2024, OTP Bank and SVD-Distribution signed the first agreement on the provision of factoring services under the joint program of OTP Bank and the USAID Investment for Business Resilience Activity (formerly USAID Financial Sector Reform Activity) to support financing of Ukrainian businesses.
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In January 2024, Beltone Financial Holding, a fast-growing financial institution, announced that its subsidiary Beltone Leasing and Factoring has signed a club deal agreement with Cairo Leasing Corporation and Easy Lease to fund Egyptians for Healthcare Services (EHCS) with a sale and leaseback deal worth EGP 600 million.
Factoring Services Key Market Trends
- Growing Demand from Small and Medium-Sized Enterprises (Smes): SMEs are increasingly turning to factoring services as a flexible financing option. Factoring provides SMEs with access to immediate cash flow by converting their accounts receivable into working capital. The convenience, speed, and accessibility of factoring services make it an attractive solution for SMEs looking to manage their cash flow and fund their business operations.
- Expansion of Factoring Services in Emerging Markets: Factoring services are gaining traction in emerging markets due to the increasing awareness and adoption of alternative financing solutions. Emerging economies, particularly in Asia, Latin America, and Africa, are witnessing a rise in the number of SMEs and a growing need for working capital. Factoring services cater to these markets by providing flexible financing options tailored to the specific needs of local businesses.
- Technological Advancements Driving Digitalization: The factoring industry is undergoing digital transformation, with the adoption of technology platforms and digital solutions. Digital factoring platforms offer streamlined processes for invoice submission, credit assessment, funding, and collections. Automation and integration with accounting systems enhance efficiency, reduce paperwork, and improve the overall customer experience.
- Integration of Supply Chain Finance and Factoring: The integration of supply chain finance and factoring is becoming a prominent trend in the market. Factoring services are often combined with supply chain finance solutions to provide end-to-end financing solutions for businesses. This integration allows businesses to optimize working capital across their supply chains, benefiting both suppliers and buyers by improving cash flow and reducing financing costs.
Factoring Services Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global factoring services market analysis, the growing demand for alternate sources of funding for micro & small and medium-sized businesses. The factoring industry is undergoing digital transformation, with the adoption of technology platforms and digital solutions. Digital factoring platforms offer streamlined processes for invoice submission, credit assessment, funding, and collections. Automation and integration with accounting systems enhance efficiency, reduce paperwork, and improve the overall customer experience.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 4.18 Trillion |
| Market size value in 2032 | USD 10.27 Trillion |
| Growth Rate | 0.105 during the forecast period (2025-2032).% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Trillion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Factoring Services Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Factoring Services Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Factoring Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Factoring Services Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Factoring Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Factoring Services Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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