Latin America Reverse Factoring Market To Reach $62,697.6 Million By 2030

Latin America Reverse Factoring Market Growth & Trends

The Latin America reverse factoring market size is expected to reach USD 62,697.6 million by 2030, registering a CAGR of 18.0% from 2023 to 2030, according to a new report by Grand View Research, Inc. Rising initiatives by international associations, governments, and market players to improve reverse factoring services in the region are supporting the growth of the reverse factoring market. Furthermore, the growing demand for working capital requirements from small and medium enterprises is expected to drive the demand for the Latin American reverse factoring market during the forecast period.

Various associations, such as FCI, International Factoring Association, Chilean Factoring Association, and The Peruvian Factoring Association are focusing on initiatives to enhance the scalability and efficiency of reverse factoring. For instance, FCIreverse, the SCF solution by FCI, allows FCI members to deploy, start, and participate in various reverse factoring or SCF programs worldwide. FCI developed this platform jointly with the supply chain finance platform, Demica Limited.

The FCIreverse platform offers benefits such as no minimum limit on factoring volume, automated supplier onboarding, and minimum time and costs for setting up. This platform is compliant with ISAE 3402 type 2 and ISO 27001 certifications and is available in more than ten Latin American countries. Further, the growing popularity of reverse factoring in Latin America is creating robust opportunities for regional market players. Several global players are also expanding their footprints in Latin America to monetize the highly profitable market.

The rising usage of e-invoicing systems in various countries such as Brazil, Peru, Chile, and Mexico plays a vital role in the rise of SCF and open account trade. Financial institutions rely on digital platforms and fintech to provide risk mitigation and finance solutions to clients. With digital technologies integrated into digital platforms, financial institutions can improve supplier onboarding, supervising functions, regulatory compliances, and other servicing functions. This assists financial institutions in risk control and evaluation in reverse factoring services at a lower cost. This factor is driving the growth of the Latin American reverse factoring market.

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Latin America Reverse Factoring Market Report Highlights

• The international segment is expected to expand at a considerable CAGR of 21.5% over the forecast period. International reverse factoring enables smooth trading operations by offering cross-border supply chain financing facilities. It provides suppliers with continuous cash flow facilities, helps in increasing production volume, and offers competitive discounting rates

• The non-banking financial institution segment is expected to advance at a substantial CAGR of 19.2% over the forecast period. Non-banking financial institutions are adopting the latest technologies and following the latest trends in the reverse factoring market to gain a competitive advantage, by offering industry-leading reverse factoring services with competitive discount rates. Such developments are expected to boost the growth of reverse factoring in the NBFIs segment over the forecast period

• The healthcare end-use segment is expected to expand at the highest CAGR of 20.6% during the projection period. Manufacturers in the healthcare industry require smooth cash flow for continuous research and development activities, expansion, and growth of the industry. Supply chain financing provides a multi-funder approach for the healthcare industry, allowing companies to benefit from multiple mid-tier relationships and provide continuous liquidity

• The reverse factoring market in Argentina is expected to progress at a CAGR of 26.7% through 2030. The emergence of new businesses and startups, along with the growing presence of supply chain factoring service providers, is propelling the growth of the reverse factoring market in the country

Latin America Reverse Factoring Market Segmentation

Grand View Research has segmented the Latin America reverse factoring market based on category, financial institution, end-use, and region:

Latin America Reverse Factoring Category Outlook (Factoring Volume, USD Million, 2018 - 2030)

• Domestic

• International

Latin America Reverse Factoring Financial Institution Outlook (Factoring Volume, USD Million, 2018 - 2030)

• Banks

• Non Banking Financial Institutions

Latin America Reverse Factoring End-use Outlook (Factoring Volume, USD Million, 2018 - 2030)

• Manufacturing

• Transport & Logistics

• Information Technology

• Healthcare

• Construction

• Others

Latin America Reverse Factoring Country Outlook (Factoring Volume, USD Million, 2018 - 2030)

• Brazil

• Mexico

• Chile

• Peru

• Argentina

• Paraguay

• Uruguay

• Ecuador

• Colombia

• Bolivia

• Rest of Latin America

List of Key Players in the Latin America Reverse Factoring Market

• Credit Suisse Group AG

• eFactor Network

• Drip Capital Inc.

• JP Morgan Chase & Co.

• Monkey

• Banco Bilbao Vizcaya Argentaria

• Kyriba

• Barclays Plc

• Deutsche Factoring Bank

• Accion International

• TRADEWIND GmbH

• HSBC Group

• Societe Generale

• Mitsubishi UFJ Financial Group, Inc.

• SUMMA FACTORING