What Fueled The Previous Growth In The Invoice Factoring Market?
The invoice factoring market has seen considerable growth due to a variety of factors.
• The market size for invoice factoring has seen swift expansion in the past few years. The projections for its growth indicate a rise from $3094.16 billion in 2024 to $3461.65 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 11.9%.
This upward trajectory in the historic period can be credited to the escalating adoption rate of fintech solutions by small and medium-sized enterprises (SMEs), heightened network security, augmented trade with rapidly growing markets, and a surge in open account trading.
What Is The Expected Growth In The Invoice Factoring Market Size Evolve over the Forecast Period?
The invoice factoring market is expected to maintain its strong growth trajectory in upcoming years.
• Predictions anticipate a burgeoning escalation in the invoice factoring market size over the forthcoming years. Experts predict that it could soar to approximately $5348.63 billion by 2029 with an accumulated annual growth rate (CAGR) of 11.5%.
Various factors are contributing to this expected growth during the forecast period, such as the upsurge in entrepreneurship, the thriving e-commerce and online marketplaces scene, augmented demand for factory services, enhanced network security, and increased appeal for alternative financing routes for micro, small, and medium enterprises (MSMEs). Key trends in the forthcoming years include pioneering technological enhancements, integration with blockchain, innovative product creations, advanced contractual capabilities, artificial intelligence (AI) and machine learning (ML) incorporation.
What Main Forces Are Fueling Expansion In The Invoice Factoring Market?
The surge in the need for fintech solutions is anticipated to drive the expansion of the invoice factoring market. Fintech solutions are associated with the utilization of path-breaking technologies to improve and simplify traditional financial services and methods. The growing adoption of fintech solutions is attributed to various factors like evolving customer expectations, digital connectivity, dissatisfaction with conventional financial services, and financial service disintermediation. Invoice factoring aids in the growth and innovation of fintech solutions by enhancing cash flow management, integrating state-of-the-art technology, diversifying financial offerings, improving accessibility, simplifying operations, and bolstering market development. For example, per the International Financial Trade Administration, a US government agency, in November 2023, the FinTech domain in the UK constituted over 1,600 firms, a figure anticipated to double by 2030. Hence, the growing popularity of fintech solutions is spurring the expansion of the invoice factoring market.
What Are The Primary Segments In The Global Invoice Factoring Market?
The invoice factoringmarket covered in this report is segmented –
1) By Type: Recourse Factoring, Non-Recourse Factoring
2) By Provider: Banks, Non-Banking Financial Companies (NBFCs)
3) By Enterprise Size: Large Enterprises, Small And Medium-Sized Enterprises
4) By Application: Domestic, International
5) By Industry: Construction, Manufacturing, Healthcare, Transportation And Logistics, Energy And Utilities, Information Technology (IT) And Telecom, Staffing, Other Industries
Subsegments:
1) By Recourse Factoring: Standard Recourse Factoring, Selective Recourse Factoring, Spot Factoring, Recourse Factoring With Reserve, Invoice Financing With Recourse
2) By Non-Recourse Factoring: Standard Non-Recourse Factoring, Non-Recourse Factoring With Full Advance, Non-Recourse Factoring With Credit Protection, Non-Recourse Spot Factoring, Non-Recourse Factoring For Startups
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Which Emerging Market Trends Are Altering The Invoice Factoring Industry?
Big players in the invoice factoring market, such as the State Bank of India (SBI), are focusing on creating more innovative solutions like web-based invoice financing. These platforms provide businesses with a more accessible way to manage their receivables, enhance liquidity, and reduce administrative costs. A web-based invoice financing tool is a digital platform allowing businesses to secure financing by utilizing their outstanding invoices. This tool accelerates their cash inflow by offering immediate access to funds based on their customers' payable amounts. For example, SBI launched a Web-Based Invoice Financing Solution in July 2024. This online platform simplifies the borrowing procedure, making it easier and more efficient for businesses aiming to employ their accounts receivable to meet immediate liquidity needs. SBI's primary objective is to address the liquidity issues faced by small enterprises, which frequently require assistance accessing formal credit. This strategy is particularly significant given the greater demand for financial resources among India's microbusinesses, small, and midsize enterprises (SMEs).
Who Are the Key Players In The Invoice Factoring Market?
Major companies operating in the invoice factoring market are:
• Industrial and Commercial Bank of China Limited (ICBC)
• Adobe Inc.
• Intuit Inc.
• Lloyds Bank Corporate Markets PLC
• American Express Company
• Accord Financial Corporation
• eCapital Corporation
• Fundbox Inc.
• Riviera Finance LLC
• Sonovate Limited
• TBS Factoring Service LLC
• Porter Capital Corporation
• Barclays Bank UK PLC
• Triumph Financial Inc.
• Nav Technologies Inc.
• Eagle Business Credit LLC
• Breakout Capital Finance Holdings Inc.
• Invoiced Inc.
• Paragon Financial Group Inc.
• Velotrade Management Limited
What Is The Most Dominant Region In The Invoice Factoring Market?
Europe was the largest region in the invoice factoring market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the invoice factoring market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
