PUBLISHER: Allied Market Research | PRODUCT CODE: 1140200
PUBLISHER: Allied Market Research | PRODUCT CODE: 1140200
Factoring is the process of purchasing accounts receivable or invoices from an organization at a discounted price to meet its short-term liquidity needs and to make profit for buyers. In addition, it refers to debt factoring, invoice financing, asset-based lending, and accounts receivable funding. It is a popular way for companies to fund cash flow by selling invoices to third parties at discounted prices. Moreover, these services are provided by either banks or independent financial services providers. However, it has some of the most common forms of factoring process that includes redemption, non-redemption, disclosure, discourse, domestic, export prepayment, and maturity factoring.
Rise in open account trading opportunities and need for alternate sources of financing for small & medium enterprises (SMEs) to meet immediate business goals are driving the global factoring service market. Moreover, increased awareness and understanding of supply chain financing benefits are boosting the market size. However, lack of a stringent regulatory framework for debt recovery mechanisms and foreign currency restrictions, and stamp duties are hampering the growth of the market. On the contrary, rise in technological advancements such as automated invoices are expected to offer remunerative opportunities for expansion of the market during the forecast period.
The factoring service market is segmented on the basis of by component, enterprise size, application, industrial vertical and region. On the basis of component, the market is categorized into banks and NBFCs. On the basis of enterprise size, the market is bifurcated into large enterprises and SMEs. On the basis of application, the market is classified into domestic and international. On the basis of industrial vertical, it is classified into construction, manufacturing, healthcare, transportation and logistics, energy and utilities, it and telecom, staffing, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the factoring service market are Advanon AG, ALAMI Technologies, Aldermore Bank PLC, AwanTunai, Barclays PLC, BNP Paribas, China Construction Bank, Deutsche Factoring Bank, Eurobank, Hitachi Capital (UK) PLC, HSBC Group, ICBC, KUKE Finance JS, Mizuho Financial Group, Inc, Riviera Finance of Texas, Inc, Societe Generale, and The Southern Bank Company. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Key Benefits For Stakeholders
Key Market Segments
By Industry Vertical
By Provider
By Enterprise Size
By Application
By Region