Factoring Services Market
Factoring Services Market Forecasts to 2030 -Global Analysis By Type (Recourse Factoring, Non-Recourse Factoring, Maturity Factoring, Invoice Discounting, Full-Service Factoring and Other Types), Provider, Enterprise Size, Application, End User and By Geography
According to Stratistics MRC, the Global Factoring Services Market is accounted for $4,132.5 billion in 2024 and is expected to reach $6,594.3 billion by 2030 growing at a CAGR of 8.1% during the forecast period. Factoring services involve a financial arrangement where a business sells its accounts receivable (invoices) to a third-party company, known as a factor, at a discount. This provides the business with immediate cash flow, helping to manage operational expenses, rather than waiting for customer payments. Factoring services are often used by companies facing cash flow issues, allowing them to focus on growth and operations without worrying about delayed payments.
According to industry trends, 91% of financial services companies are either using AI solutions across their operations or have already implemented AI to foster innovation, boost operational efficiency, and enhance customer experiences.
Market Dynamics:
Driver:
Rise in cross-border trade
The rise in cross-border trade has significantly boosted the market. As international transactions increase, businesses face challenges in managing receivables and ensuring cash flow. Factoring services provide a solution by offering immediate liquidity and reducing the risks associated with foreign trade. With globalization, companies are increasingly leveraging factoring to finance their operations, manage currency fluctuations, and mitigate the complexities of collecting payments across borders.
Restraint:
Lack of transparency
Lack of transparency in the factoring services market can lead to distrust and potential financial risks for businesses. Hidden fees, unclear terms, or ambiguous contract conditions may result in unexpected costs or unfavorable terms for clients. This lack of clarity can discourage businesses from utilizing factoring services, limiting their access to much-needed liquidity. Furthermore, it can damage the reputation of factoring providers, hindering market growth and customer confidence.
Opportunity:
Growing awareness and acceptance
Growing awareness and acceptance of factoring services have driven market expansion. As businesses seek flexible financing options, factoring has gained popularity for its ability to improve cash flow without incurring debt. More companies, especially small and medium-sized enterprises (SMEs), recognize the benefits of factoring in managing working capital and reducing financial strain. Increased understanding of its advantages, such as quick access to funds and risk mitigation, has fueled broader adoption across industries.
Threat:
High Costs
High costs in the market can significantly impact businesses, especially small and medium-sized enterprises (SMEs). The fees and interest rates associated with factoring can reduce profit margins, making it an expensive financing option. This financial burden may discourage companies from using factoring services, leading them to seek alternative, more affordable solutions. Ultimately, high costs can limit the market's growth and hinder businesses' ability to maintain sustainable cash flow.
Covid-19 Impact:
The COVID-19 pandemic had a significant impact on the factoring services market, increasing demand for liquidity as businesses faced financial challenges. With delayed payments and supply chain disruptions, companies sought factoring to maintain cash flow. However, the economic uncertainty led some factoring providers to tighten their criteria, resulting in limited access for certain businesses. Despite this, factoring services played a critical role in helping many companies survive during the crisis.
The recourse factoring segment is expected to be the largest during the forecast period
The recourse factoring segment is expected to account for the largest market share during the projection period. Recourse factoring is a type of factoring service where the business selling its receivables retains the responsibility for any unpaid invoices. If the customer fails to pay, the business must repay the factor. This option typically comes with lower fees compared to non-recourse factoring, making it an attractive choice for businesses seeking cost-effective solutions. However, it involves higher risk for the seller if customers default on payments.
The manufacturing segment is expected to have the highest CAGR during the forecast period
The manufacturing segment is expected to have the highest CAGR during the extrapolated period as manufacturers often face cash flow challenges due to delayed payments from buyers. Factoring services provide an essential solution by allowing manufacturers to sell their receivables for immediate cash, enabling them to continue production and meet operational needs. This financial flexibility supports growth, reduces financial strain, and helps manufacturers manage the cyclicasl nature of their business and supply chain delays.
Region with largest share:
North America region is estimated to account for the largest market share during the forecast period driven by increased demand from small and medium-sized enterprises (SMEs) seeking working capital. Factoring, which involves selling receivables to a third party at a discount, offers businesses quick access to cash flow. With the rise of e-commerce and supply chain complexities, factoring services are becoming crucial for companies aiming to improve liquidity and operational efficiency in the region.
Region with highest CAGR:
Asia Pacific is expected to register the highest growth rate over the forecast period. The digital transformation of financial services is enhancing the factoring landscape. Online platforms and fintech companies are making factoring services more accessible to SMEs, providing faster, more efficient, and transparent services. Moreover, The increasing focus on international trade and exports in the region is driving the demand for factoring services, particularly for export factoring, where businesses sell their invoices to factoring companies to obtain immediate funds.
Key players in the market
Some of the key players in Factoring Services market include BNP Paribas Fortis, ABN AMRO Bank N.V., Barclays Bank PLC, TCI Business Capital, Factor Funding Co., Hitachi Capital (UK) PLC, China Construction Bank Corporation, Deutsche Factoring Bank, Mizuho Financial Group, Inc., RTS Financial Service, Inc., ICBC China, Eurobank, HSBC Group, Paragon Financial and Kuke Finance.
Key Developments:
In February 2024, BNP Paribas Fortis and Worldline, a multinational payment and transactional services company based in France, announced extending their partnership, with plans envisaging the extension starting from February 2024 for a tenure of at least five years, emphasizing providing top-tier, customer-focused issuing solutions.
In May 2024, ABN AMRO Bank N.V. reached an agreement with Fosun International to acquire Hauck Aufhäuser Lampe, a private banking institution based in Germany. Following the acquisition, Bethmann Bank, the bank’s private banking arm in Germany, is positioned to become a significant player in providing banking solutions to private clients, family-owned enterprises, and institutional clients across the nation.
Types Covered:
• Recourse Factoring
• Non-Recourse Factoring
• Maturity Factoring
• Invoice Discounting
• Full-Service Factoring
• Other Types
Providers Covered:
• Banks
• Fintech Platforms
• Asset-Based Lenders
• Commercial Finance Companies
Enterprise Sizes Covered:
• Small Enterprises
• Medium Enterprises
• Large Enterprises
Applications Covered:
• Domestic
• International
End Users Covered:
• Manufacturing
• Construction
• Healthcare
• Transportation and Logistics
• IT and Telecom
• Retail
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Factoring Services Market, By Type
5.1 Introduction
5.2 Recourse Factoring
5.3 Non-Recourse Factoring
5.4 Maturity Factoring
5.5 Invoice Discounting
5.6 Full-Service Factoring
5.7 Other Types
6 Global Factoring Services Market, By Provider
6.1 Introduction
6.2 Banks
6.3 Fintech Platforms
6.4 Asset-Based Lenders
6.5 Commercial Finance Companies
7 Global Factoring Services Market, By Enterprise Size
7.1 Introduction
7.2 Small Enterprises
7.3 Medium Enterprises
7.4 Large Enterprises
8 Global Factoring Services Market, By Application
8.1 Introduction
8.2 Domestic
8.3 International
9 Global Factoring Services Market, By End User
9.1 Introduction
9.2 Manufacturing
9.3 Construction
9.4 Healthcare
9.5 Transportation and Logistics
9.6 IT and Telecom
9.7 Retail
9.8 Other End Users
10 Global Factoring Services Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa
11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies
12 Company Profiling
12.1 BNP Paribas Fortis
12.2 ABN AMRO Bank N.V.
12.3 Barclays Bank PLC
12.4 TCI Business Capital
12.5 Factor Funding Co.
12.6 Hitachi Capital (UK) PLC
12.7 China Construction Bank Corporation
12.8 Deutsche Factoring Bank
12.9 Mizuho Financial Group, Inc.
12.10 RTS Financial Service, Inc.
12.11 ICBC China
12.12 Eurobank
12.13 HSBC Group
12.14 Paragon Financial
12.15 Kuke Finance
List of Tables
1 Global Factoring Services Market Outlook, By Region (2022-2030) ($MN)
2 Global Factoring Services Market Outlook, By Type (2022-2030) ($MN)
3 Global Factoring Services Market Outlook, By Recourse Factoring (2022-2030) ($MN)
4 Global Factoring Services Market Outlook, By Non-Recourse Factoring (2022-2030) ($MN)
5 Global Factoring Services Market Outlook, By Maturity Factoring (2022-2030) ($MN)
6 Global Factoring Services Market Outlook, By Invoice Discounting (2022-2030) ($MN)
7 Global Factoring Services Market Outlook, By Full-Service Factoring (2022-2030) ($MN)
8 Global Factoring Services Market Outlook, By Other Types (2022-2030) ($MN)
9 Global Factoring Services Market Outlook, By Provider (2022-2030) ($MN)
10 Global Factoring Services Market Outlook, By Banks (2022-2030) ($MN)
11 Global Factoring Services Market Outlook, By Fintech Platforms (2022-2030) ($MN)
12 Global Factoring Services Market Outlook, By Asset-Based Lenders (2022-2030) ($MN)
13 Global Factoring Services Market Outlook, By Commercial Finance Companies (2022-2030) ($MN)
14 Global Factoring Services Market Outlook, By Enterprise Size (2022-2030) ($MN)
15 Global Factoring Services Market Outlook, By Small Enterprises (2022-2030) ($MN)
16 Global Factoring Services Market Outlook, By Medium Enterprises (2022-2030) ($MN)
17 Global Factoring Services Market Outlook, By Large Enterprises (2022-2030) ($MN)
18 Global Factoring Services Market Outlook, By Application (2022-2030) ($MN)
19 Global Factoring Services Market Outlook, By Domestic (2022-2030) ($MN)
20 Global Factoring Services Market Outlook, By International (2022-2030) ($MN)
21 Global Factoring Services Market Outlook, By End User (2022-2030) ($MN)
22 Global Factoring Services Market Outlook, By Manufacturing(2022-2030) ($MN)
23 Global Factoring Services Market Outlook, By Construction (2022-2030) ($MN)
24 Global Factoring Services Market Outlook, By Healthcare (2022-2030) ($MN)
25 Global Factoring Services Market Outlook, By Transportation and Logistics (2022-2030) ($MN)
26 Global Factoring Services Market Outlook, By IT and Telecom (2022-2030) ($MN)
27 Global Factoring Services Market Outlook, By Retail (2022-2030) ($MN)
28 Global Factoring Services Market Outlook, By Other End Users (2022-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
Frequently Asked Questions
In case of any queries regarding this report, you can contact the customer service by filing the “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
Yes, the samples are available for all the published reports. You can request them by filling the “Request Sample” option available in this page.
Yes, you can request a sample with your specific requirements. All the customized samples will be provided as per the requirement with the real data masked.
All our reports are available in Digital PDF format. In case if you require them in any other formats, such as PPT, Excel etc you can submit a request through “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
We offer a free 15% customization with every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.
We have 3 different licensing options available in electronic format.
- Single User Licence: Allows one person, typically the buyer, to have access to the ordered product. The ordered product cannot be distributed to anyone else.
- 2-5 User Licence: Allows the ordered product to be shared among a maximum of 5 people within your organisation.
- Corporate License: Allows the product to be shared among all employees of your organisation regardless of their geographical location.
All our reports are typically be emailed to you as an attachment.
To order any available report you need to register on our website. The payment can be made either through CCAvenue or PayPal payments gateways which accept all international cards.
We extend our support to 6 months post sale. A post sale customization is also provided to cover your unmet needs in the report.
Request Customization
We provide a free 15% customization on every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.
Note: This customization is absolutely free until it falls under the 15% bracket. If your requirement exceeds this a feasibility check will be performed. Post that, a quote will be provided along with the timelines.
WHY CHOOSE US ?
Assured Quality
Best in class reports with high standard of research integrity
24X7 Research Support
Continuous support to ensure the best customer experience.
Free Customization
Adding more values to your product of interest.
Safe & Secure Access
Providing a secured environment for all online transactions.
Trusted by 600+ Brands
Serving the most reputed brands across the world.
