What Has Been the Growth of the Factoring Services Market So Far?
The factoring services market has seen considerable growth due to a variety of factors.
• The factoring services market has grown significantly in recent years. It is expected to grow from $3.7 billion in 2024 to $4.02 billion in 2025, at a compound annual growth rate (CAGR) of 8.6%.
This growth is driven by the increased demand for alternative financing solutions, a rise in banking and trading activities, greater popularity of factoring services, the need for working capital financing, and a boost in international trade.
What Is the Forecasted Market Size and Growth Rate for The Factoring Services Market Size In The Coming Years?
The factoring services market is expected to maintain its strong growth trajectory in upcoming years.
• The factoring services market is expected to grow steadily, reaching $5.51 billion by 2029 with a CAGR of 8.2%.
The growth is driven by the increase in cross-border factoring, the rapid development of factoring services, the use of digital platforms, a rise in cross-border transactions, and the expansion of the manufacturing sector. Major trends include improvements in financial technology, the rise of new online factoring platforms, the adoption of crypto-solutions, AI applications, and the integration of supply chain finance and factoring.
What Factors Are Driving Growth In The Factoring Services Market?
The increase in cross-border trade is expected to spur the growth of the factoring services market. Cross-border trade involves the exchange of goods and services between residents and non-residents across different countries. The rise in trade is driven by technological advancements, policy changes, and market demands. Factoring services, which involve selling accounts receivable to third-party companies, help businesses optimize cash flow and manage risks in international trade. The United Nations Conference on Trade and Development reported that world trade reached $28.5 trillion in 2022, a 25% increase from 2020. This growth in trade is propelling the factoring services market.
What Are The Main Segments 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
Subsegments:
1) By Recourse: Traditional Recourse Factoring, Invoice Discounting With Recourse
2) By Non-recourse: Non-Recourse Factoring With Credit Protection, Full-Service Non-Recourse Factoring
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How Are Emerging Trends Reshaping The Dynamics Of The Factoring Services Market?
In the factoring services market, companies are adopting innovative solutions such as receivables finance to enhance their market position. Receivables finance allows businesses to access funds based on outstanding invoices, improving cash flow and working capital. For instance, in December 2022, Kyriba Corp., a US-based software firm, launched Kyriba Receivables Finance, a factoring solution that simplifies the invoice factoring process. The platform offers easy management of payments, improved cash flow visibility, automated processing, and secure real-time tracking, helping businesses quickly access capital and streamline operations.
Who Are the Key Players In The Factoring Services Market?
Major companies operating in the factoring services market are:
• ICBC China Limited
• JPMorgan Chase & Co.
• Banco Santander S.A.
• HSBC Holdings plc
• Wells Fargo & Company
• BNP Paribas SA
• Banco do Brasil S.A.
• ING Groep N.V.
• Barclays Bank plc
• Société Générale SA
• Banco Bilbao Vizcaya Argentaria S.A.
• Deutsche Bank AG
• Sumitomo Mitsui Banking Corporation
• UniCredit S.p.A.
• Standard Chartered plc
• KBC Group NV
• Commerzbank AG
• Banco Popular Español S.A.
• TCI Business Capital Inc.
• RTS Financial Service Inc.
• Advanon AG
What Is The Most Dominant Region In The Factoring Services Market?
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.
