Factoring Market by Type, Industry - Global Forecast 2024-2030

List of Tables

[194 Pages Report] The Factoring Market size was estimated at USD 3.85 trillion in 2023 and expected to reach USD 4.10 trillion in 2024, at a CAGR 7.19% to reach USD 6.26 trillion by 2030.

Factoring is a debtor finance medium where a business sells its invoices or accounts receivables to a third party, called a factor, at a discount. It is an essential tool for providing working capital to businesses that might have cash flow issues due to slow-paying customers or longer sales cycles. The end-users of factoring services are diverse, including small businesses struggling with cash flow gaps due to delayed payments from customers, seasonal businesses requiring funding during peak periods, and fast-growing companies in need of working capital for business expansion. Improved international trade enhances opportunities for factoring companies to address cross-border transaction challenges faced by exporters/importers. However, limited awareness of factoring services among businesses and strict regulatory frameworks aimed at factoring services have impacted their adoption worldwide. Market players are expected to keep up with the changing regulations while ensuring the provision of quality services to expand the market development. They are also leveraging advanced data analytics tools to improve risk assessment and decision-making processes, allowing factors to gain a competitive edge.

KEY MARKET STATISTICS
Base Year [2023]	USD 3.85 trillion
Estimated Year [2024]	USD 4.10 trillion
Forecast Year [2030]	USD 6.26 trillion
CAGR (%)	7.19%

Type: Emerging need of factoring to help businesses for managing better working capital management of the businesses

International factoring facilitates trade across borders by partnering with global factoring companies and service optimizes cash flow for businesses engaged in international transactions while minimizing risk exposure. Non-notification factoring, or confidential factoring, enables businesses to sell accounts receivable without informing customers about the involvement of a factor. Providers focus on offering discreet funding options for companies seeking to maintain customer relationships while accessing immediate financing. Notification factoring involves selling accounts receivable to a factor who assumes responsibility for collecting payments from customers. Furthermore, businesses should evaluate their requirements when choosing an appropriate factoring solution and collaborate with reputable providers offering tailored services that match their unique needs.

Industry: Exponential penetration of factoring for digital banking and government & public industries to ensure smooth financial operations

Factoring is an essential financial tool that enables businesses to maintain cash flow by selling invoices to third parties across major end-use verticals. Aerospace & defense companies rely on factoring to manage cash flow challenges due to long lead times and high capital investments. Automotive & transportation companies can benefit from factoring services by addressing liquidity issues arising from extended payment terms with suppliers or customers. The growth of digital banking services has been a significant development in this sector. These services can leverage factoring solutions to bridge payment gaps amidst fluctuating project timelines. The increasing demand for green building solutions contributes to this sector's factoring needs in building, construction & real estate. Moreover, surge in e-commerce growth boosted the adoption of factoring services owing to seasonality and inventory management challenges. Additionally, increased focus on renewable energy sources is a notable development affecting this industry. Increased public spending during the global economic recovery requires factoring services to maintain liquidity amidst high research and development costs across healthcare, manufacturing, and education. In the education sector factoring services ensure timely payments from students or governments, given their reliance on tuition fees. The continued trend of online learning expansion that started during the COVID-19 pandemic has influenced this sector.

Regional Insights

In the Americas, factoring is widely utilized by small to medium-sized enterprises (SMEs) seeking immediate cash flows instead of waiting for invoice payments. Many factoring companies are currently focusing on collaborating with fintech companies to improve efficiency through automation solutions. The Asian market has been experiencing rapid growth in recent years because of increasing trade activities within emerging economies such as India and China. Asia-Pacific is home to smaller factoring businesses and less-established credit histories compared to other regions; however, the region shows potential for new entrants and international player expansion. Europe is among the largest factoring markets globally due to the well-established regulatory framework that promotes more comprehensive credit risk management practices. Factoring service providers in Europe focus on providing tailored solutions considering the unique needs of clients, varying from small single-invoice transactions to comprehensive supply chain finance programs for large-scale buyers and suppliers.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Factoring Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Factoring Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Factoring Market, highlighting leading vendors and their innovative profiles. These include ABN AMRO Group, Aerofund Financial, Inc., American Receivable, Apex Capital Corp., Axiom Bank, N.A., Bluevine Inc. By Fundthrough, BNP Paribas S.A., Breakout Capital, LLC, Canbank Factors Ltd., Capital One Financial Corporation, Catalyst Financial Company, CIT Group Inc., Close Brothers Group PLC, Deutsche Leasing Group, Drip Capital Services India LLP, eCapital, Inc., FactorCloud, Fundbox, Inc., Infusion Funding, LLC, King Trade Capital, New Century Financial, Inc., Nucleus Commercial Finance Ltd., OTR Solutions, Riviera Finance of Texas, Inc., Rosenthal & Rosenthal, RTS Financial Service, Inc., Simplex Group, TAB Bank, TBS Factoring Service, LLC, Triumph Financial, Inc., and Universal Funding Corporation.

Market Segmentation & Coverage

This research report categorizes the Factoring Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
- International Factoring
- Non-Notification Factoring
- Notification Factoring

Industry
- Aerospace & Defense
- Automotive & Transportation
- Banking, Financial Services & Insurance
- Building, Construction & Real Estate
- Consumer Goods & Retail
- Education
- Energy & Utilities
- Government & Public Sector
- Healthcare & Life Sciences
- Information Technology
- Manufacturing
- Media & Entertainment
- Telecommunication
- Travel & Hospitality

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Factoring Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Factoring Market?

3. What are the technology trends and regulatory frameworks in the Factoring Market?

4. What is the market share of the leading vendors in the Factoring Market?

5. Which modes and strategic moves are suitable for entering the Factoring Market?

Product Code: MRR-43539E5D2996

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Need for consistent working capital among small & medium size enterprises
  - 5.1.1.2. Rising international trade activities and cross-border transactions
  - 5.1.1.3. Increasing focus on financial risk mitigation across industries
- 5.1.2. Restraints
  - 5.1.2.1. Impact on the creditworthiness of users and hidden costs of factoring
- 5.1.3. Opportunities
  - 5.1.3.1. Technological advancements in factoring solutions and services with AI & ML
  - 5.1.3.2. Interest in promoting sustainable business practices through green factoring
- 5.1.4. Challenges
  - 5.1.4.1. Complexity of factoring agreements and terms & conditions
5.2. Market Segmentation Analysis
- 5.2.1. Type: Emerging need of factoring to help businesses for managing better working capital management of the businesses
- 5.2.2. Industry: Exponential penetration of factoring for digital banking and government & public industries to ensure smooth financial operations
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Factoring Market, by Type

6.1. Introduction
6.2. International Factoring
6.3. Non-Notification Factoring
6.4. Notification Factoring

7. Factoring Market, by Industry

7.1. Introduction
7.2. Aerospace & Defense
7.3. Automotive & Transportation
7.4. Banking, Financial Services & Insurance
7.5. Building, Construction & Real Estate
7.6. Consumer Goods & Retail
7.7. Education
7.8. Energy & Utilities
7.9. Government & Public Sector
7.10. Healthcare & Life Sciences
7.11. Information Technology
7.12. Manufacturing
7.13. Media & Entertainment
7.14. Telecommunication
7.15. Travel & Hospitality

8. Americas Factoring Market

8.1. Introduction
8.2. Argentina
8.3. Brazil
8.4. Canada
8.5. Mexico
8.6. United States

9. Asia-Pacific Factoring Market

9.1. Introduction
9.2. Australia
9.3. China
9.4. India
9.5. Indonesia
9.6. Japan
9.7. Malaysia
9.8. Philippines
9.9. Singapore
9.10. South Korea
9.11. Taiwan
9.12. Thailand
9.13. Vietnam

10. Europe, Middle East & Africa Factoring Market

10.1. Introduction
10.2. Denmark
10.3. Egypt
10.4. Finland
10.5. France
10.6. Germany
10.7. Israel
10.8. Italy
10.9. Netherlands
10.10. Nigeria
10.11. Norway
10.12. Poland
10.13. Qatar
10.14. Russia
10.15. Saudi Arabia
10.16. South Africa
10.17. Spain
10.18. Sweden
10.19. Switzerland
10.20. Turkey
10.21. United Arab Emirates
10.22. United Kingdom

11. Competitive Landscape

11.1. Market Share Analysis, 2023
11.2. FPNV Positioning Matrix, 2023
11.3. Competitive Scenario Analysis
- 11.3.1. Breakout Capital and 12Five Capital Join Forces to Create a Powerhouse in Small Business Lending
- 11.3.2. TAB Bank Completes USD 46 Million Acquisition of BAMFi's BAM Capital Division
- 11.3.3. FactorCloud Announces Partnership with Ansonia Credit Data
- 11.3.4. Rosenthal & Rosenthal Launches New Recourse Factoring Program
11.4. Strategy Analysis & Recommendation

12. Competitive Portfolio

12.1. Key Company Profiles
12.2. Key Product Portfolio