What Is The Scope Of The Global Factoring Services Market?
Factoring services refers to financial transactions in which a business sells its accounts receivable (invoices) to a third party (called a factor) at a discount. This practice provides the selling business with immediate cash flow, while the factor assumes the risk of collecting the receivables.
Factoring Services Global Market Report 2024 provides data on the global factoring services market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The factoring services market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
What Are The Expected Annual Growth Rates And Market Size Estimates For The Global Factoring Services Market?
The factoring services market has seen strong growth in recent years, increasing from $3.43 billion in 2023 to $3.70 billion in 2024 at a CAGR of 8%. This growth is attributed to the rising demand for alternative financing solutions, growing banking and trading activities, the increasing popularity of factoring services, a greater need for working capital financing, and expanding international trade. The market is expected to reach $5.09 billion by 2028, with a CAGR of 8.3%. Factors contributing to this growth include increased cross-border factoring, the rapid development of factoring services, greater use of digital platforms, rising cross-border transactions, and the growth of the manufacturing sector. Trends in the forecast period include improvements in financial technology, the rise of new online factoring platforms, adoption of cryptocurrency solutions, the growing use of AI, technological advancements, and the integration of supply chain finance with factoring.
Which Factors Are Boosting Growth In The Factoring Services Market?
The growth in cross-border trade is expected to drive the factoring services market. Cross-border trade involves the exchange of goods and services between different countries, and its rise is driven by technological advancements, policy changes, and global market demand. Factoring services are used to optimize cash flow, reduce risks, and support the expansion of global operations by allowing businesses to sell accounts receivable to third-party factoring companies. According to the United Nations Conference on Trade and Development, global trade reached a record high of $28.5 trillion in 2022, a 25% increase from 2020. The growth in cross-border trade is boosting the demand for factoring services.
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What Key Areas Define The Segmentation Of The Global Factoring Services Market?
The factoring services market covered in this report is segmented –
1) By Type: Recourse, Non-Recourse
2) By Provider: Banks, Non-Banking Financial Institutions
3) By Category: Domestic, International
4) By Application: Small And Medium Enterprise (SMEs), Large Enterprise
5) By End-Use: Manufacturing, Transport And Logistics, Information Technology, Healthcare, Construction, Other End-Uses
How Are Emerging Trends Reshaping The Dynamics Of The Factoring Services Market?
In the factoring services market, companies are developing innovative solutions such as receivables finance to gain a competitive edge. Receivables finance allows businesses to access funds based on outstanding invoices or accounts receivable, improving cash flow and supporting growth. For instance, in December 2022, Kyriba Corp. launched Kyriba Receivables Finance, a factoring solution that streamlines the invoice factoring process. This platform improves cash flow visibility, automates payment processing, and provides access to various financing options, enabling businesses to quickly access capital.
Which Region Has The Fastest Expansion In The Factoring Services Maket?
Europe was the largest region in the factoring services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the factoring services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
