Authored By: Sarah
11 Jul 2024

 Factoring Market to grow by USD 2196.4 billion between 2024-2028

According to a research report “ Factoring Market” by Type (Domestic, International) Application (SMEs, Large enterprise) Geography (Europe, APAC, South America, North America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 2196.4 billion at a CAGR of  8.8% during the forecast period. In the realm of MSME financing, factoring emerges as a significant solution for businesses seeking working capital loans. This alternative financing method mitigates credit risks by offering dynamic incentives, such as waived start-up and termination fees. Factoring's popularity surges in both emerging and developed economies, particularly among MSMEs, due to its ability to provide essential liquidity and support growth initiatives, including product development and improved inventory management..

Browse market data tables, figures, and in-depth TOC on “Factoring Market” by Type (Domestic, International) Application (SMEs, Large enterprise) Geography (Europe, APAC, South America, North America, Middle East and Africa) Global Forecast to 2028.

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By Type, the Domestic segment is projected to dominate the market size in 2024.

In the global factoring market, Small and Medium Enterprises (SMEs) represent a significant market share. The necessity for non-recourse financing by SMEs drives this trend, as it offers short-term funding, debt security, employment opportunities, and growth potential. Financing is vital for SMEs to expand their business, innovate, enhance inventory management, and upgrade manufacturing facilities. Due to capital constraints, SMEs often opt for external financing, such as factoring. Factoring benefits SMEs by expediting payment cycles, saving valuable time and resources, and enabling focus on strategic business functions, including R&D, sales, marketing, and client management.

By Application, SMEs  segment is expected to hold the largest market size for the year 2024.

In the domestic factoring market, small and medium-sized enterprises (SMEs) encounter obstacles in obtaining traditional bank loans due to insufficient credit histories or collateral. This gap is bridged by domestic factoring, which offers these businesses short-term working capital and cash inflows for local sales transactions. The surge in e-commerce and online businesses amplifies the demand for swift and efficient financing solutions, making domestic factoring an indispensable tool for maintaining cash flow and fostering growth in the domestic sector.

Europe is forecasted to hold the largest market size by region in 2024.

In the realm of business finance, the factoring market plays a pivotal role in facilitating cash flow for companies. By purchasing accounts receivable at a discount, factoring companies provide immediate access to cash for businesses, enabling them to meet their financial obligations and fuel growth. This financial solution is particularly beneficial for small and medium-sized enterprises, bridging the gap between invoice issuance and receipt of payment.

The Factoring Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • ABS Global Factoring AG
  • American Receivable
  • Bluevine Inc.
  • CapitalPlus Construction Services
  • CG24 Group AG
  • Charter Capital Holdings LP
  • Deutsche Leasing AG
  • eCapital Corp.
  • Factor Funding Co.
  • HSBC Holdings Plc
  • Mizuho Financial Group Inc.
  • New Century Financial Inc.
  • Pincap.
  • PMFBancorp
  • Riviera Finance of Texas Inc.
  • Societe Generale SA
  • The Southern Banc Co. Inc.
  • Triumph Business Capital
  • Universal Funding Corp.
  • Worldline SA

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Research Analysis Overview

In the dynamic world of financial services, the Factoring Market plays a significant role in facilitating Supply Chain Finance and Trade Finance. This market connects Potential Investors with businesses seeking Capital, often in the form of Debt. Financial institutions serve as intermediaries, providing necessary liquidity to businesses by purchasing their Accounts Receivable at a discount. Factoring is particularly relevant in various sectors such as Rehabilitation Centers, Nurse Staffing Agencies, Home Health Agencies, Ambulatory Services, and Laboratory Services. The process involves the electronic transfer of Digital Documentation, enabling Automation and Electronic alternatives to traditional methods like Cheques. Advancements in technology have revolutionized Factoring. AI-based and Cloud-based models streamline processes, ensuring efficiency and accuracy. Machine Learning algorithms analyze creditworthiness, reducing risk for Financial Institutions. On-premise deployment and traditional methods continue to coexist, catering to diverse business needs. International Trade and Cryptocurrency are also influenced by Factoring. Factoring enables businesses to access Capital in foreign currencies, facilitating International Trade. Cryptocurrency Factoring provides an alternative financing solution for businesses dealing in digital currencies. In conclusion, the Factoring Market is a vital component of the financial services landscape, bridging the gap between Capital needs and liquidity, while leveraging technology to enhance efficiency and accessibility.

Market Research Overview

In the dynamic world of business finance, factoring continues to be a significant solution for companies seeking capital, particularly in the context of emerging economies and international trade. Factoring, a type of supply chain finance and trade finance, enables businesses, including importers and exporters, to receive funds against their accounts receivables or invoices, providing essential liquidity and credit risk mitigation. Factoring can take various forms, such as invoice factoring, export factoring, cross-border factoring, and domestic factoring. Innovative solutions like R3CORDA, Hyperledger, NEO, Ethereum, and smart contracts offer encrypted and centralized approaches, enhancing security and efficiency. Factoring benefits include improved operational activity, cash flow, and financial planning for businesses. Factoring can also support SMEs in their growth opportunities, offering flexible financing alternatives during economic swings and market expansion. Key players in the factoring market include financial institutions, payment service providers, licensed e-money institutions, and third-party insurers. The adoption rate of factoring solutions continues to grow, driven by industry trends, regulatory changes, and the increasing use of financial technology, such as AI-based and cloud-based models, digital documentation, and automation. Factoring can be applied to various industries, including healthcare, such as rehabilitation centers, nurse staffing agencies, home health agencies, and hospitals, as well as ambulatory services, laboratory services, and medical insurance claims.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

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