Global Factoring Market to Reach US$ 6,365.4 Billion by 2032, Propelled by Growing Demand for Working Capital in Businesses

June 02, 2023 | BFSI

According to the latest report by IMARC Group, titled “Factoring Market Report by Type (International, Domestic), Organization Size (Small and Medium Enterprises, Large Enterprises), Application (Transportation, Healthcare, Construction, Manufacturing, and Others), and Region 2024-2032”, the global factoring market size reached US$ 3,857.1 Billion in 2023. Factoring refers to a financial service provided by banks or third-party financial service providers, which provides a way for businesses to raise funds by trading their accounts receivables at a discount rate. This financial arrangement involves three key stakeholders: the seller, buyer, and factor. The seller sells goods, generates invoices, submits them to the factor, and after verification receives the major share of the funds upfront, and the remaining part is received after the buyer pays the factor. The cost of factoring is determined by the financing volume and credit quality of the invoices and are particularly beneficial for businesses involved in logistics and manufacturing, as well as for those facing seasonal fluctuations in the marketplace. Factoring services play a crucial role in collecting receivables, maintaining sales ledgers, and providing credit control and protection and in times of economic uncertainty, offer a secure and accessible financing option.


Global Factoring Market Trends:

The global market is majorly driven by the escalating demand for working capital in businesses to meet their short-term financial obligations. In line with this, the rising need for mitigating potential losses due to non-payment or delayed payment and improved cash flow management by organizations of all sizes is providing an impetus to the market. Moreover, the growing number of small and medium-sized enterprises (SMEs) that are more susceptible to facing challenges in obtaining traditional bank financing due to limited credit history or collateral is resulting in a higher service uptake. In addition to this, the rapid expansion of international trade with businesses increasingly engaging in cross-border transactions is creating lucrative opportunities in the market. Moreover, the advent of digital platforms and fintech solutions with higher transparency, improved accessibility, and automated processes is creating a positive market outlook. Some of the other factors contributing to the market include rapid digitalization in the BFSI sector, inflating disposable income levels, rising trend of startups, particularly in developing economies, and extensive research and development (R&D) activities. On account of the aforementioned factors, the market is anticipated to reach a value of US$ 6,365.4 Billion by 2032, exhibiting a CAGR of 5.6% during 2024-2032.


Market Summary:

  • Based on the type, the market has been segmented into international and domestic. Among these, domestic represents the largest market segment. 
  • On the basis of the organization size, the market has been divided into small and medium enterprises and large enterprises. Among these, large enterprises account for the dominant market share. 
  • Based on the application, the market has been categorized into transportation, healthcare, construction, manufacturing, and others. Between these, manufacturing accounts for the biggest segment in the market. 
  • On the geographical front, the market has been segregated into North America (the United States and Canada), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others), Latin America (Brazil, Mexico and others), and Middle East and Africa. At present, Europe holds the leading position in the market. 
  • The competitive landscape of the market has been studied in the report with the detailed profiles of the key players. Some of these players include CreditGate24 (Schweiz) AG, Aldermore Bank PLC (FirstRand Group), Bluevine Capital Inc., BNP Paribas S.A., Deutsche Leasing AG (Deutsche Sparkassen Leasing AG & Co. KG), Eurobank Ergasias SA, HSBC Holdings Plc, Mizuho Financial Group Inc., Société Générale S.A., and The Southern Bank Company Inc.


Report Coverage:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Segment Coverage Type, Organization Size, Application, Region
Region Covered  Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered CreditGate24 (Schweiz) AG, Aldermore Bank PLC (FirstRand Group), Bluevine Capital Inc., BNP Paribas S.A., Deutsche Leasing AG (Deutsche Sparkassen Leasing AG & Co. KG), Eurobank Ergasias SA, HSBC Holdings Plc, Mizuho Financial Group Inc., Société Générale S.A. and The Southern Bank Company Inc.
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Global Factoring Market to Reach US$ 6,365.4 Billion by 2032, Propelled by Growing Demand for Working Capital in Businesses
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