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

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