Factoring Services Market To Reach $7,005.90 Billion By 2030

Factoring Services Market Growth & Trends

The global factoring services market size is expected to reach USD 7,005.90 billion by 2030 and expand at a significant CAGR of 9.2% from 2023 to 2030. The remarkable growth can be attributed to the rise in open account trading and cross-border business, and the expansion of the manufacturing industry in Asian countries such as China and India is expected to boost the growth of this market. Besides, the need of startups and Small & Medium Enterprises (SMEs) for an alternative source of finance propels the demand in this market. Additionally, the implementation of technological advancements such as Blockchain and distributed ledger will improve the overall supply chain process by reducing operational costs and enhancing security across the system.

A rise in demand for factoring services can be seen due to its ability to customize depending upon the client’s requirement unlike bank loans, the factoring services are based on the current value of the sales ledger and not on historic management information. Factoring does not result in an increase in liability, as it is a transaction of sale and not a loan. A few factors, including archaic regulations, foreign currency restrictions, continued usage of stamp duty tax, and traditional laws restricting the right of assignment, might slow down the growth for a short period. However, several service providers are observed to utilize the latest technologies to overcome such problems.

The factoring services providers such as Eurobank, Société Générale S.A., REV Capital, and Tradewind Finance are adopting various business strategies to improve their services portfolio and attract potential business clients. For instance, in April 2022, Eurobank Factors, a subsidiary of Eurobank, unveiled new improvements to its factoring and launched new digital reverse factoring services. The bank’s new digital reverse factoring services are aimed at assisting clients in improving their cash flow ratio and providing clients with a loyalty scheme on lenient terms. The new services would aid the bank in expanding its customer base for factoring services in the EMEA region.

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Factoring Services Market Report Highlights

• The international market is expected to witness considerable growth of CAGR of 9.8% over the forecast period. This is due to the rapid growth of trade among emerging economies such as China, India, and Thailand which are exporting products to other developing countries

• The non-recourse segment is expected to grow considerably during the forecast period with a CAGR of 9.6%, as the non-recourse service providers perform thorough credit evaluations and offer credit protection against bad debts. Additionally, many large enterprises collaborate with factoring firms to offload their account receivables and clean up their balance sheets, which will help this segment grow further

• The bank segment accounts for the highest market share in 2022 and throughout the forecast period. The growing cross-border transactions and adoption of mobile-based payment channels are anticipated to propel the segment growth over the forecast period. Market players such as Punjab National Bank, SBI Global Factors Ltd., and Deutsche Factoring Bank are adopting mergers & acquisitions, and partnerships to upgrade their products and gain a competitive advantage in the market

• The healthcare segment is anticipated to grow with a considerable CAGR of 10.5% over the forecast period. Slow payments are very common across the healthcare industry which hinders expansion and makes it tough to cover expenses, thus, numerous healthcare firms depend on factoring services providers. Additionally, healthcare factoring firms provide advanced payments for third-party payers (Medicaid, Medicare, or private insurance), and offer support to cover the lease cost of equipment, these factors will further boost the growth of the healthcare industry

• The Asia Pacific market is expected to grow with the fastest CAGR of 11.5%, owing to infrastructural and industrial growth in the region. Additionally, India and China, the world’s most densely populated countries are present in the Asia Pacific region where the demand for factoring services is higher among SMEs

Factoring Services Market Segmentation

Grand View Research has segmented the global factoring services market based on category, type, financial institution, end-use, and region.

Factoring Services Category Outlook (Factoring Volume, USD Billion; 2018 - 2030)

• Domestic

• International

Factoring Services Type Outlook (Factoring Volume, USD Billion; 2018 - 2030)

• Recourse

• Non-Recourse

Factoring Services Financial Institution Outlook (Factoring Volume, USD Billion; 2018 - 2030)

• Banks

• Non-Banking Financial Institutions

Factoring Services End-use Outlook (Factoring Volume, USD Billion; 2018 - 2030)

• Manufacturing

• Transport & Logistics

• Information Technology

• Healthcare

• Construction

• Others (Staffing Agencies, Advertising, Oilfield Services, And Commercial Food & Beverages)

Factoring Services Regional Outlook (Factoring Volume, USD Billion; 2018 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • Germany

  • U.K.

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

  • Singapore

• Latin America

  • Brazil

  • Mexico

  • Chile

  • Argentina

• MEA

  • U.A.E.

  • Saudi Arabia

  • South Africa

List of Key Players in the Factoring Services Market

• altLINE (The Southern Bank Company)

• Barclays Bank PLC

• BNP Paribas

• China Construction Bank Corporation

• Deutsche Factoring Bank

• Eurobank

• Factor Funding Co.

• Hitachi Capital (UK) PLC

• HSBC Group

• ICBC China

• Kuke Finance

• Mizuho Financial Group, Inc.

• RTS Financial Service, Inc.

• Société Générale S.A.

• TCI Business Capital