Factoring Services Market Size, Share | Report 2023-2032
The global factoring services market was valued at USD 3,567.03 billion in 2022 and it is predicted to surpass around USD 8,640.15 billion by 2032 with a CAGR of 9.25% from 2023 to 2032.
Key Pointers
| Report Coverage | Details |
| Market Size in 2022 | USD 3,567.03 billion |
| Revenue Forecast by 2032 | USD 8,640.15 billion |
| Growth rate from 2023 to 2032 | CAGR of 9.25% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Regions Covered | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
| Companies Covered | China Construction Bank Corporation; Deutsche Factoring Bank; Barclays Bank PLC; BNP Paribas; Hitachi Capital (UK) PLC; Eurobank; HSBC Group; ICBC China; Kuke Finance; Mizuho Financial Group, Inc. |
The increasing need for alternative sources of financing for micro and small & medium enterprises is driving the growth of the market. Several organizations continue to take advantage of Machine Learning (ML), Natural Language Processing (NLP), and Artificial Intelligence (AI), which are expected to generate profitable growth prospects for the factoring services during the forecast period. The COVID-19 pandemic is expected to introduce a more collaborative approach, wherein banks and Supply Chain Finance (SCFs) firms are expected to work together to provide benefits to the client ecosystems. The factoring services industry is expected to shift towards digital documentation, with cloud-based and AI-based models improving the efficiency of services post-pandemic creating robust factoring services market opportunities.
Growing public awareness regarding developments in financial technology, such as government and factoring group lobbying and activities, cryptocurrency, increasing international trade, and widespread usage of digital platforms are some key factors driving the market growth. Businesses often have to wait for customers to pay which affects the cash flow, thus, to remediate this delay, factoring companies offer upfront cash in exchange for account receivables, which makes factoring services referable.
Businesses can reduce credit risk and acquire working capital loans with factoring services. Finance, Competitiveness, and Innovation (FCI) Global Practice is taking a series of steps to boost awareness, including hosting workshops to explain the relevance of factoring to government officials and other key stakeholders. It continues to support the establishment of effective assignment legislation, third-party rights safeguards, and the promotion of good governance to create a robust legal and regulatory environment to develop a solid legal infrastructure.
As a result, in April 2022, FCI launched the Edifactoring 2.0 platform, an online platform to support the two-factor business model for members of FCI through a set of Electronic Document Interchange (EDI) messages. The platform runs on FCI’s legal structure and helps to overcome the challenges in cross-bordering factoring.
Since factoring businesses serve a variety of industries; their pricing and levels of customer service can offer differentiated products depending on the end-user’s requirements. Moreover, the ability to complete the process and provide advance payment within 24-72 hours makes the service faster than bank loans. However, new technologies are assisting factoring companies in providing better customer service by offering consumers access to web portals and applications to review and respond to frequently asked inquiries about their accounts.
Low-profit margin and rising digital threats such as viruses, ransomware, spyware & Distributed denial of service (DDoS) attacks are expected to affect the factoring services market growth over the forecast period. Several organizations have incurred significant losses in terms of unplanned workforce reduction, brand reputation, revenue, and business disruptions due to data breaches.
Factoring Services Market Segmentations:
| By Category | By Type | By Financial Institution | By End-use |
|
Domestic International |
Recourse Non-recourse |
Banks Non-banking Financial Institutions |
Manufacturing Transport & Logistics Information Technology Healthcare Construction Others (Staffing Agencies, Advertising, Oilfield Services, And Commercial Food & Beverages) |
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Factoring Services Market
5.1. COVID-19 Landscape: Factoring Services Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Factoring Services Market, By Category
8.1. Factoring Services Market, by Category, 2023-2032
8.1.1. Domestic
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. International
8.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Factoring Services Market, By Type
9.1. Factoring Services Market, by Type, 2023-2032
9.1.1. Recourse
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Non-recourse
9.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Factoring Services Market, By Financial Institution
10.1. Factoring Services Market, by Financial Institution, 2023-2032
10.1.1. Banks
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Non-banking Financial Institutions
10.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Factoring Services Market, By End-use
11.1. Factoring Services Market, by End-use, 2023-2032
11.1.1. Manufacturing
11.1.1.1. Market Revenue and Forecast (2020-2032)
11.1.2. Transport & Logistics
11.1.2.1. Market Revenue and Forecast (2020-2032)
11.1.3. Information Technology
11.1.3.1. Market Revenue and Forecast (2020-2032)
11.1.4. Healthcare
11.1.4.1. Market Revenue and Forecast (2020-2032)
11.1.5. Construction
11.1.5.1. Market Revenue and Forecast (2020-2032)
11.1.6. Others (Staffing Agencies, Advertising, Oilfield Services, And Commercial Food & Beverages)
11.1.6.1. Market Revenue and Forecast (2020-2032)
Chapter 12. Global Factoring Services Market, Regional Estimates and Trend Forecast
12.1. North America
12.1.1. Market Revenue and Forecast, by Category (2020-2032)
12.1.2. Market Revenue and Forecast, by Type (2020-2032)
12.1.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.1.4. Market Revenue and Forecast, by End-use (2020-2032)
12.1.5. U.S.
12.1.5.1. Market Revenue and Forecast, by Category (2020-2032)
12.1.5.2. Market Revenue and Forecast, by Type (2020-2032)
12.1.5.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.1.5.4. Market Revenue and Forecast, by End-use (2020-2032)
12.1.6. Rest of North America
12.1.6.1. Market Revenue and Forecast, by Category (2020-2032)
12.1.6.2. Market Revenue and Forecast, by Type (2020-2032)
12.1.6.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.1.6.4. Market Revenue and Forecast, by End-use (2020-2032)
12.2. Europe
12.2.1. Market Revenue and Forecast, by Category (2020-2032)
12.2.2. Market Revenue and Forecast, by Type (2020-2032)
12.2.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.2.4. Market Revenue and Forecast, by End-use (2020-2032)
12.2.5. UK
12.2.5.1. Market Revenue and Forecast, by Category (2020-2032)
12.2.5.2. Market Revenue and Forecast, by Type (2020-2032)
12.2.5.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.2.5.4. Market Revenue and Forecast, by End-use (2020-2032)
12.2.6. Germany
12.2.6.1. Market Revenue and Forecast, by Category (2020-2032)
12.2.6.2. Market Revenue and Forecast, by Type (2020-2032)
12.2.6.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.2.6.4. Market Revenue and Forecast, by End-use (2020-2032)
12.2.7. France
12.2.7.1. Market Revenue and Forecast, by Category (2020-2032)
12.2.7.2. Market Revenue and Forecast, by Type (2020-2032)
12.2.7.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.2.7.4. Market Revenue and Forecast, by End-use (2020-2032)
12.2.8. Rest of Europe
12.2.8.1. Market Revenue and Forecast, by Category (2020-2032)
12.2.8.2. Market Revenue and Forecast, by Type (2020-2032)
12.2.8.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.2.8.4. Market Revenue and Forecast, by End-use (2020-2032)
12.3. APAC
12.3.1. Market Revenue and Forecast, by Category (2020-2032)
12.3.2. Market Revenue and Forecast, by Type (2020-2032)
12.3.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.3.4. Market Revenue and Forecast, by End-use (2020-2032)
12.3.5. India
12.3.5.1. Market Revenue and Forecast, by Category (2020-2032)
12.3.5.2. Market Revenue and Forecast, by Type (2020-2032)
12.3.5.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.3.5.4. Market Revenue and Forecast, by End-use (2020-2032)
12.3.6. China
12.3.6.1. Market Revenue and Forecast, by Category (2020-2032)
12.3.6.2. Market Revenue and Forecast, by Type (2020-2032)
12.3.6.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.3.6.4. Market Revenue and Forecast, by End-use (2020-2032)
12.3.7. Japan
12.3.7.1. Market Revenue and Forecast, by Category (2020-2032)
12.3.7.2. Market Revenue and Forecast, by Type (2020-2032)
12.3.7.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.3.7.4. Market Revenue and Forecast, by End-use (2020-2032)
12.3.8. Rest of APAC
12.3.8.1. Market Revenue and Forecast, by Category (2020-2032)
12.3.8.2. Market Revenue and Forecast, by Type (2020-2032)
12.3.8.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.3.8.4. Market Revenue and Forecast, by End-use (2020-2032)
12.4. MEA
12.4.1. Market Revenue and Forecast, by Category (2020-2032)
12.4.2. Market Revenue and Forecast, by Type (2020-2032)
12.4.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.4.4. Market Revenue and Forecast, by End-use (2020-2032)
12.4.5. GCC
12.4.5.1. Market Revenue and Forecast, by Category (2020-2032)
12.4.5.2. Market Revenue and Forecast, by Type (2020-2032)
12.4.5.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.4.5.4. Market Revenue and Forecast, by End-use (2020-2032)
12.4.6. North Africa
12.4.6.1. Market Revenue and Forecast, by Category (2020-2032)
12.4.6.2. Market Revenue and Forecast, by Type (2020-2032)
12.4.6.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.4.6.4. Market Revenue and Forecast, by End-use (2020-2032)
12.4.7. South Africa
12.4.7.1. Market Revenue and Forecast, by Category (2020-2032)
12.4.7.2. Market Revenue and Forecast, by Type (2020-2032)
12.4.7.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.4.7.4. Market Revenue and Forecast, by End-use (2020-2032)
12.4.8. Rest of MEA
12.4.8.1. Market Revenue and Forecast, by Category (2020-2032)
12.4.8.2. Market Revenue and Forecast, by Type (2020-2032)
12.4.8.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.4.8.4. Market Revenue and Forecast, by End-use (2020-2032)
12.5. Latin America
12.5.1. Market Revenue and Forecast, by Category (2020-2032)
12.5.2. Market Revenue and Forecast, by Type (2020-2032)
12.5.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.5.4. Market Revenue and Forecast, by End-use (2020-2032)
12.5.5. Brazil
12.5.5.1. Market Revenue and Forecast, by Category (2020-2032)
12.5.5.2. Market Revenue and Forecast, by Type (2020-2032)
12.5.5.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.5.5.4. Market Revenue and Forecast, by End-use (2020-2032)
12.5.6. Rest of LATAM
12.5.6.1. Market Revenue and Forecast, by Category (2020-2032)
12.5.6.2. Market Revenue and Forecast, by Type (2020-2032)
12.5.6.3. Market Revenue and Forecast, by Financial Institution (2020-2032)
12.5.6.4. Market Revenue and Forecast, by End-use (2020-2032)
Chapter 13. Company Profiles
13.1. China Construction Bank Corporation
13.1.1. Company Overview
13.1.2. Product Offerings
13.1.3. Financial Performance
13.1.4. Recent Initiatives
13.2. Deutsche Factoring Bank
13.2.1. Company Overview
13.2.2. Product Offerings
13.2.3. Financial Performance
13.2.4. Recent Initiatives
13.3. Barclays Bank PLC
13.3.1. Company Overview
13.3.2. Product Offerings
13.3.3. Financial Performance
13.3.4. Recent Initiatives
13.4. BNP Paribas
13.4.1. Company Overview
13.4.2. Product Offerings
13.4.3. Financial Performance
13.4.4. Recent Initiatives
13.5. Hitachi Capital (UK) PLC
13.5.1. Company Overview
13.5.2. Product Offerings
13.5.3. Financial Performance
13.5.4. Recent Initiatives
13.6. Eurobank
13.6.1. Company Overview
13.6.2. Product Offerings
13.6.3. Financial Performance
13.6.4. Recent Initiatives
13.7. HSBC Group
13.7.1. Company Overview
13.7.2. Product Offerings
13.7.3. Financial Performance
13.7.4. Recent Initiatives
13.8. ICBC China
13.8.1. Company Overview
13.8.2. Product Offerings
13.8.3. Financial Performance
13.8.4. Recent Initiatives
13.9. Kuke Finance
13.9.1. Company Overview
13.9.2. Product Offerings
13.9.3. Financial Performance
13.9.4. Recent Initiatives
13.10. Mizuho Financial Group, Inc.
13.10.1. Company Overview
13.10.2. Product Offerings
13.10.3. Financial Performance
13.10.4. Recent Initiatives
Chapter 14. Research Methodology
14.1. Primary Research
14.2. Secondary Research
14.3. Assumptions
Chapter 15. Appendix
15.1. About Us
15.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers