The global factoring services market size is expected to reach USD 8,188.67 billion by 2030, exhibiting a CAGR of 10.5% from 2024 to 2030, according to a new study by Grand View Research, Inc. The increasing demand for quick and hassle-free financing sources among Micro, Small, and Medium Enterprises (MSMEs) is driving market growth. Factoring services help businesses secure working capital loans and mitigate credit risks. Furthermore, the integration of Artificial Intelligence (AI) and machine learning is anticipated to enhance fraud risk identification, streamline underwriting processes, provide operational savings, and simplify payment applications. Fintech companies and banks have embraced these technologies to develop innovative products and maintain competitiveness in the market.
Since many factoring companies and other lenders have adopted disintegrated data architecture, the use of Application Programming Interface (API), File Transfer Protocol (FTP), or other types of protocols may not be suitable for all kinds of factoring operations. RPA helps businesses automate many processes and become more efficient because it does not necessitate backend coding and helps reduce difficulties associated with code-based data integrations. Furthermore, low-code applications are in high demand because they enable organizations to deploy robust apps that can be easily customized to the organization's needs while saving time, money, and errors in the operation.
Many Business-to-Consumer (B2C) transactions and payment methods, including cheques, are being replaced with electronic alternatives. Digitizing accounts receivable processes helps reduce printing costs and boosts employee profits. Numerous enterprises prefer on-premises deployment of accounts receivable solutions for complete control over infrastructure, assets, and business records. This preference is especially strong in the healthcare and BFSI sectors due to the critical nature of data across these industries. These factors are expected to drive the demand for automation in the factoring services market.
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Based on category, the international segment is expected to register a CAGR of 11.0% from 2024 to 2030. International factoring service providers bridge helps in bridging the gap by extending credit against foreign receivables, offering clients extra capital to foster business growth and handle expenses. Consequently, international factoring emerges as an essential tool for businesses seeking global expansion while upholding financial stability
Based on type, the non-recourse segment is expected to register a CAGR of 10.8% from 2024 to 2030. Non-recourse factoring enables business expansion by permitting companies to onboard new clients and scale their activities without raising credit risk exposure. This flexibility in client acquisition and the capacity to capitalize on growth prospects are key drivers behind the growing preference for non-recourse factoring
The non-banking financial institution segment is expected to register a CAGR of 11.9% from 2024 to 2030. Non-banking financial institutions provide adaptable and personalized factoring solutions, unlike conventional banking systems. NBFIs can customize terms, pricing structures, advance rates, and service levels to align with the specific preferences and circumstances of factoring businesses. This flexibility empowers customers to select arrangements that precisely meet their business needs
North America is expected to register a CAGR of 10.0% from 2024 to 2030. In North America, factoring companies are honing their focus on delivering specialized services tailored to niche markets like transportation, staffing, and advertising. This strategic specialization enables these companies to gain deeper insights into the distinct requirements and obstacles faced by their clients, thereby offering customized financing solutions and additional value-added services
Grand View Research has segmented the global factoring services market based on category, type, financial institution, end-use, and region:
Factoring Services Category Outlook (Revenue, USD Billion, 2018 - 2030)
Domestic
International
Factoring Services Type Outlook (Revenue, USD Billion, 2018 - 2030)
Recourse
Non-recourse
Factoring Services Financial Institution Outlook (Revenue, USD Billion, 2018 - 2030)
Banks
Non-banking Financial Institutions
Factoring Services End-use Outlook (Revenue, USD Billion, 2018 - 2030)
Manufacturing
Transport & Logistics
Information Technology
Healthcare
Construction
Staffing
Others
Factoring Services Regional Outlook (Revenue, USD Billion, 2018 - 2030)
North America
U.S.
Canada
Mexico
Europe
UK
Germany
France
Italy
Spain
Poland
Belgium
Netherlands
Asia Pacific
China
India
Japan
South Korea
Australia
Latin America
Brazil
Middle East & Africa (MEA)
UAE
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
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