The most recent report from IMARC Group, titled “Factoring Market: Global Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2024-2032,” reveals that the global factoring market reached a valuation of US$ 3,857.1 Billion in 2023. The forecast indicates that the market is poised to achieve a valuation of US$ 6,365.4 Billion by 2032, reflecting a compound annual growth rate (CAGR) of 5.6% during the forecast period of 2024-2032.
Factoring, an increasingly popular financial solution within the business community, offers numerous advantages such as alleviating working capital constraints and enhancing cash flow efficiency. This mechanism involves a business selling its accounts receivable, typically in the form of invoices, to a third-party financial entity known as a factor. In return, the factor promptly disburses a significant portion of the invoice’s value to the business, often within 24 to 48 hours. Subsequently, the factor takes charge of collecting payments from the business’s clients. This transaction grants companies immediate access to essential funds, enabling them to address pressing operational requirements like inventory replenishment, payroll obligations, and expansion initiatives, without being hindered by delayed customer payments.
Market Trends and Drivers:
The global factoring market has witnessed notable expansion, primarily fueled by the growing demand from small and medium-sized enterprises (SMEs) for flexible financing alternatives. SMEs are increasingly embracing factoring as a practical means to bridge cash flow gaps, given the stringent criteria and delays associated with traditional bank lending. Factoring offers these businesses swift access to liquidity, empowering them to manage day-to-day expenses and capitalize on growth prospects. Additionally, factoring has emerged as a crucial facilitator of international trade transactions. With globalization shaping contemporary business landscapes, cross-border trade activities are on the rise. In this context, factoring serves a pivotal role in mitigating risks linked to foreign buyers and intricate trade arrangements. As exporters and importers seek secure and efficient payment solutions, factoring provides them with a mechanism to ensure timely payments while minimizing exposure to currency fluctuations and trade-related uncertainties.
Report Segmentation:
The report categorizes the market into the following segments:
Types:
• International
• Domestic
Organization Size:
• Small and Medium Enterprises
• Large Enterprises
Applications:
• Transportation
• Healthcare
• Construction
• Manufacturing
• Others
Regional Breakdown:
• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa
Competitive Landscape featuring Key Players:
• 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.
• The Southern Bank Company Inc.
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