Factoring Services Market Growth and Forecast | 2031

Factoring Services Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Category (International, Domestic); By Type (Non-Recourse, Recourse); By Financial Institution (Non-Banking Financial Institutions, Banks); By End-use (Transport & Logistics, Information Technology, Manufacturing, Healthcare, Construction, Others); and Geography

  • Report Code : TIPRE00039097
  • Category : Banking, Financial Services, and Insurance
  • No. of Pages : 150
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Factoring Services Market Growth and Forecast | 2031

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The size is expected to grow from US$ 3,533.88 billion in 2023 to US$ 7,465.70 billion by 2031; it is anticipated to expand at a CAGR of 9.8% from 2023 to 2031.

Factoring Services Market Analysis

The factoring services market forecast is estimated on the basis of various secondary and primary research findings such as key company publications, association data, and databases. The factoring services market trends are anticipated to shift in the direction of digital documentation, with AI-based and cloud-based models improving the effectiveness of services post-pandemic, generating strong market opportunities. Increasing public awareness regarding developments in financial technology, such as cryptocurrency, factoring group lobbying and activities, swelling international trade, and extensive usage of digital platforms are some significant factors driving market factoring services growth. Businesses often must wait for clientele to pay, which affects cash flow. Thus, to remediate this delay, factoring businesses provide upfront cash in exchange for account receivables, which makes factoring services more required. Businesses can decrease credit risk and acquire working capital loans with factoring services.

Factoring Services

Industry Overview

  • Factoring service is a procedure of collection of receivables and maintains credit control, sales ledgers, and credit protection. Additionally, services are helpful in numerous ways, such as the necessity for secure financing, which is subject to robust fluctuations owing to periodic changes in the marketplace. Furthermore, businesses involved in manufacturing and logistics services make factoring a supreme way of financing, as these organizations have several accounts receivable from other businesses.
  • The growing automation in financial services aids financial institutions to streamline their operations and enhance their credit collection procedure by automating time-consuming and repetitive backend operations. Additionally, automation aids in implementing resources for value-added projects and enhances the reliability of financial institutions. With the help of automation solutions, financial organizations have enhanced their operation procedures, precisely accounts receivable processes. Account receivable solutions can incorporate numerous technologies, such as Artificial Intelligence (AI), automation, and machine learning throughout the credit cycle, which aids the institutions to deal with the crisis efficiently.

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Factoring Services Market: Strategic Insights

factoring-services-market
Market Size Value inUS$ 3,533.88 billion in 2023
Market Size Value byUS$ 7,465.70 billion by 2031
Growth rateCAGR of 9.8% from 2023 to 2031
Forecast Period2023-2031
Base Year2023
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Factoring Services Market Driver

Growing Financial Industry to Drive Factoring Services Market Growth

  • Finance, Competitiveness, and Innovation Global Practice (FCI) are taking steps to increase awareness, including conducting workshops to enlighten the significance of factoring to government bureaucrats and other major stakeholders. It continues to support the establishment of third-party rights safeguards, effective assignment legislation, and promotion of good governance to generate a robust regulatory and legal environment to develop a robust legal infrastructure. As a result, in April 2022, FCI announced the launch of the Edifactoring 2.0 platform, an online platform to support a two-factor business model for associates of FCI through a set of Electronic Document Interchange (EDI) messages. This platform runs on FCI’s legal structure and aids in overcoming challenges in cross-bordering factoring.
  • Growth in open account trading opportunities and the requirement for alternative sources of financing for small & medium enterprises (SMEs) to meet instantaneous business goals are boosting the global factoring service market. Furthermore, augmented awareness and understanding of supply chain financing advantages are driving the factoring service market growth. However, the lack of a stringent governing framework for debt recovery mechanisms, foreign currency limitations, and stamp duties are hindering the factoring service market. On the contrary, increases in technological advancements such as automated invoices are anticipated to provide lucrative opportunities for the factoring services market growth during the forecast period.

Factoring Services

Market Report Segmentation Analysis

  • Based on category, the factoring services market is segmented into domestic and international. The domestic segment held a significant factoring services market share in 2023.
  • The segment growth can be accredited to the rapid implementation of factoring receivable methods method in major industries owing to their efficiency. Additionally, the swelling significance of electronic invoices has subsidized the consolidation of the domestic segment in the factoring services market. Domestic factoring provides businesses with a monthly or weekly analysis of payable and sales invoices. Furthermore, low cost and easy risk coverage provided by the domestic segment in comparison with international factoring support the segment growth.

Factoring Services

Market Regional Analysis

The scope of the factoring services market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is observing rapid growth and is expected to hold a noteworthy factoring services market share in 2022. The Asia Pacific region is projected to observe considerable growth with a significant CAGR during the forecast period owing to the expansion of the manufacturing sector in economies such as China, India, and other Southeast Asian countries.

Factoring Services

Market Report Scope

The "Factoring Services Market Analysis" was carried out based on card type and geography. In terms of card type, the market is segmented into signature, platinum, gold, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Factoring Services

Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the Factoring services market. A few recent key market developments are listed below: 

  • In March 2023, BNP Paribas entered into partnered with Hokodo to launch a BNPL (Buy now, Pay Later) platform. Large international establishments will be able to deliver their business customers with payment selections through this platform, which makes usage of the B2B BNPL platform from Hokodo and the detailed knowledge and financial steadiness of BNP Paribas. Hokodo and BNP Paribas deliver this leading-edge buy now, pay later feature by employing the best of their cash management and factoring skills.

(Source: BNP Paribas, Company Website)

Factoring Services

Market Report Coverage & Deliverables

The market report "Factoring Services Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-

  • Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
  • Market dynamics such as drivers, restraints, and key opportunities.
  • Key future trends.
  • Detailed PEST & SWOT analysis
  • Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
  • Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
  • Detailed company profiles.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Category, Type, Financial Institution, End-use, and Geography

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions


Which are the key players holding the major market share of the factoring services market?

The key players holding majority shares in the global factoring services market are altLINE (The Southern Bank Company), China Construction Bank Corporation, Barclays Bank PLC, BNP Paribas, and Deutsche Factoring Bank.

What will be the market size for the global factoring services market by 2031?

The global Factoring services market is expected to reach US$ 7465.70 billion by 2031.

What is the estimated market size for the global factoring services market in 2023?

The global factoring services market was estimated to be US$ 3,533.88 billion in 2023 and is expected to grow at a CAGR of 9.8% during 2023 - 2031.

What are the future trends of the global factoring services market?

Digital advancements in the factoring services market to play a significant role in the global factoring services market in the coming years.

What are the driving factors impacting the global factoring services market?

The growing finance industry and increasing initiatives by market players are the major factors that propel the global factoring services market.

  • altLINE
  • ICBC China Barclays Bank PLC
  • Deutsche Factoring Bank
  • BNP Paribas
  • Eurobank
  • Hitachi Capital (UK) PLC
  • Factor Funding Co.
  • HSBC Group
  • ICBC China
  • China Construction Bank Corporation.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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