Factoring Services Market

Global Industry Analysis and Forecast 2023-2030

Pages : 120

Base Year : 2022

Released Year : October 2023

Format :Pdf Ppt Xls

Report ID:KR303

Author : Priyanka V.

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Base Year


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Forecast Year


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Historical Years


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Market Value (2022)

USD 3453.32 Billion

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Forecasted Value (2030)

USD 6345.43 Billion

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CAGR (2023 – 2030)


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Fastest Growing Region

Asia Pacific

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Largest Region


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By Type

Recourse, Non-Recourse

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By Category

Domestic, International

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By Provider

Banks, Non-Banking Financial Institutions

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By End User

Manufacturing, Transportation, Healthcare, Construction, Others

Factoring Services Market Size

The global Factoring Services Market size was valued at USD 3453.32 billion in 2022 and is projected to reach USD 6345.43 billion by 2030, growing at a CAGR of 7.20% from 2023 to 2030. The market is witnessing significant growth due to the increasing demand for alternative financing solutions among small and medium-sized enterprises (SMEs). Factoring services provide businesses with immediate cash flow by purchasing their accounts receivable at a discounted rate. This enables companies to access funds quickly and efficiently, allowing them to meet their working capital needs and invest in growth opportunities.

Additionally, factoring services offer benefits such as credit risk management, collections, and credit protection, which further attract businesses to opt for these services.

In addition, factoring services can also help SMEs reduce the burden of managing and monitoring their accounts receivable. By outsourcing these tasks to a factoring company, businesses can free up valuable time and resources to focus on core operations. Moreover, factoring services often come with additional value-added services, such as financial reporting and analysis, which can provide valuable insights to help businesses make informed decisions. Overall, factoring services offer a convenient and efficient solution for SMEs to improve their cash flow and streamline their financial operations.

Analyst’s Review

The factoring services market is expected to witness significant growth in the coming years. Factors such as the increasing need for working capital financing, the rise in international trade activities, and the growing popularity of factoring services among small and medium-sized enterprises (SMEs) are driving the market's expansion. Additionally, the digitalization of factoring processes and the adoption of advanced technologies, such as artificial intelligence and blockchain, are further propelling factoring services market growth.

In addition, technological advancements have simplified and streamlined the factoring process, making it more efficient and cost-effective for both lenders and borrowers. With the use of artificial intelligence, lenders can analyze large amounts of data to assess the creditworthiness of borrowers, leading to faster approval times and reduced risk. Furthermore, blockchain technology provides a secure and transparent platform for factoring transactions, eliminating the need for intermediaries and reducing the chances of fraud.

As a result, more businesses are turning to factoring as a reliable and accessible financing option, fueling the market's progress.

Market Definition

Factoring services refers to a financial service that involves the buying and selling of accounts receivable. It is a process where a company sells its outstanding invoices to a third party, known as a factor, in exchange for immediate cash. This service is particularly beneficial for businesses that are looking to improve their cash flow and accelerate their receivables. By outsourcing the management of accounts receivable, companies can focus on their core operations and reduce the burden of chasing payments. Additionally, global factoring services often provide businesses with access to international markets, allowing them to expand their customer base and increase sales.

Moreover, factoring services offer businesses a way to mitigate the risk of non-payment by assuming the responsibility of collecting payments from customers. This eliminates the need for businesses to hire additional staff or invest in expensive collection tools. Factoring can also provide businesses with valuable insights and analysis on their customers' creditworthiness, helping them make informed decisions about extending credit terms. Overall, factoring services offer a flexible and efficient solution for businesses seeking to improve their cash flow, reduce risk, and expand their customer reach.

Factoring Services Market Dynamics

The increasing demand for working capital among small and medium-sized enterprises (SMEs) is driving the factoring service market as SMEs often face cash flow issues and struggle to secure traditional financing options such as bank loans. Factoring services provide them with an alternative solution by allowing them to sell their accounts receivable to a factoring company at a discounted rate. This provides immediate cash flow and helps SMEs meet their working capital needs.

Additionally, factoring services offer quick and easy access to funds, which is crucial for SMEs that require immediate liquidity to cover expenses or invest in growth opportunities. Furthermore, factoring services also help mitigate the risk of non-payment from customers, as the factoring company takes on the responsibility of collecting payments. Overall, the increasing demand for working capital and the benefits offered by factoring services make it an appealing option for SMEs.

Moreover, these services not only provide a solution for cash flow issues but also offer flexibility in terms of repayment options. In contrast to traditional bank loans, factoring services allow SMEs to receive funds based on their outstanding invoices, giving them the freedom to choose which invoices to factor and when. This flexibility enables SMEs to manage their cash flow effectively and invest in their business growth without being tied down by rigid repayment schedules. In conclusion, factoring services prove to be a valuable resource for SMEs in need of working capital and financial stability.

Factoring Services Market Regional Analysis

The global market is segmented based on type, category, provider, end user, and geography.

By Type

Based on type, the factoring services market is bifurcated into recourse and non-recourse. The Recourse segment is expected to dominate the market as recourse factoring entails a personal guarantee from the owner in order to retain liquidity in the case of bad debt and to acquire back non-performing accounts receivable taken as collateral by the factor. In addition, the recourse factoring industry provides various benefits such as lower costs, greater flexibility in advanced rates, and greater flexibility in credit requirements, among others, is driving segment expansion.

By Category

Based on category, the factoring services market is bifurcated into domestic and international. The Domestic segment is expected to dominate the market over the assessment period owing to the rapid adoption of factoring receivable methods in various industries due to their effectiveness. Furthermore, the growing importance of electronic invoices has helped to consolidate the domestic factoring sector.

Factoring Services Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Europe is expected to dominate the market through the forecast timeline due to the increased focus of transportation businesses on export business factoring and emerging start-ups in factoring services from countries such as the United Kingdom, Germany, Italy, Romania, and Sweden. In addition, significant EU investments in factoring services for small and medium-sized businesses, as well as organizations in the manufacturing and engineering sectors, are boosting market growth.

Asia-Pacific is expected to be the fastest growing region in factoring services market over 2023-2030 on account of the proliferating manufacturing sector in economies, such as India and other South & Southeast Asian countries. These economies are swiftly transitioning from rural to manufacturing and export-oriented, bolstering the region's factoring services industry growth.

Competitive Landscape

The global factoring services industry study will provide valuable insights with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization.

List of Key Companies in Factoring Services Market

  • altLINE
  • China Construction Bank
  • Deutsche Factoring Bank
  • Barclays Bank PLC
  • BNP Paribas Fortis
  • Factor Funding Co.
  • Eurobank Direktna a.d.
  • HSBC Group
  • RTS Financial Service, Inc.
  • ICBC

Key Industry Development

April 2022(Launch): Eurobank Factors, a subsidiary of Eurobank, unveiled new improvements to its factoring services and launched new digital reverse factoring services.

The global Factoring Services Market is segmented as:

By Type

  • Recourse
  • Non-Recourse

By Category

  • Domestic
  • International

By Provider

  • Banks
  • Non-Banking Financial Institutions

By End User

  • Manufacturing
  • Transportation
  • Healthcare
  • Construction
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global market is projected to reach 6345.43 USD billion by 2030, growing at a CAGR of 7.20% from 2023 to 2030.
The global market was valued at USD 3453.32 billion in 2022.
The major driving factor for the market growth is the increasing demand for alternative finance solutions along increased need for working capital.
Top manufacturers of factoring services are altLINE, China Construction Bank, Deutsche Factoring Bank, Barclays Bank PLC, BNP Paribas Fortis, Factor Funding Co., Eurobank Direktna a.d., HSBC Group, RTS Financial Service, Inc., and ICBC, among others.
Asia-Pacific is the fastest growing region in the forecasted period (2023-2030).
By type segment, recourse segment will hold the maximum share in the factoring services market in the forecast period.
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