Tuesday, 02 January 2024 12:17 GMT

Factoring Services Market Report 2025-2033 Competitive Analysis Of Awantunai, Eurobank Ergasias, Hitachi Capital, KUKE Finance, Deutsche Factoring Bank, Barclays, BNP Paribas, Mizuho Financial, RTS


(MENAFN- GlobeNewsWire - Nasdaq) The Global Factoring Services Market is projected to grow from US$ 4.20 trillion in 2024 to US$ 7.60 trillion by 2033, driven by a 6.82% CAGR. This growth is spurred by the increasing demand for alternative financing, improved cash flow solutions for SMEs, technological innovations, and the expansion of international trade. Key sectors include construction, manufacturing, healthcare, and logistics, while fintech adoption enhances accessibility. Despite regulatory complexities, the growth of factoring services in emerging economies like India and Saudi Arabia underscores the market's vast potential. Leading companies such as BNP Paribas and Deutsche Factoring Bank play pivotal roles in shaping this landscape.

Dublin, Sept. 08, 2025 (GLOBE NEWSWIRE) -- The "Factoring Services Market - Financial Solutions & Forecast 2025-2033" report has been added to ResearchAndMarkets's offering.
Global Factoring Services Market will grow to US$ 7.60 trillion by 2033, from US$ 4.20 trillion in 2024, at a CAGR of 6.82% during 2025-2033

The growth is fueled by rising demand for alternative financing, better cash flow solutions for small and medium enterprises (SMEs), and growth in international trade, particularly in emerging markets with developing financial infrastructures.


Factoring facilities are financial services in which a company sells its accounts receivable (bills) to an external entity, or a factor, at a reduced price in return for immediate cash. This provides businesses with access to working capital without having to wait for their customers' payments, improving cash flow and efficiency in operations. Factoring is particularly ideal for small and medium-sized businesses (SMEs) that can be challenged to obtain conventional loans or credit lines.
The use of factoring services has increased considerably over the past few years because more people have been demanding flexible financing. With increasing international trade and companies looking for quicker liquidity, factoring offers a viable alternative to fill the gap between payment and invoicing. The factoring business has been facilitated by digital platforms and technological innovations, rendering it more efficient and accessible. In addition, the growth in e-commerce and cross-border transactions has created additional need for factoring, cementing its position as a key tool for ensuring good cash flow and business stability.
Drivers of Growth in the Global Factoring Services Market

Growing Need for Working Capital among SMEs
Small and medium-sized firms (SMEs) usually have difficulty with cash flow because of late payments and restricted access to conventional credit. Factoring provides a quick and versatile source of finance by turning receivables into cash instantaneously. As small and medium enterprises constitute a majority of world business activity, increased dependence on factoring services strongly contributes to market growth.

SME financing is additionally supported by governments and financial institutions, further stimulating the uptake of factoring to maintain and grow operations. Bibby Financial Services Ltd. acquired the Working Capital Finance Division of U.K.-based investment holding company Aldermore Group in June 2023. The acquisition aligned with Bibby Financial Services Ltd.'s strategic goals and a key part of the BFS 4.0 strategy, which envisioned growing the company's support for SMEs, both organically as well as through strategic acquisitions.
Increase in International Trade
Globalization of supply chains and increase in cross-border trade are driving the demand for international factoring services. Global businesses experience delayed payments and exchange risks, which factoring can mitigate.

Export factoring, in especial, helps companies better handle the receivables from foreign customers. As e-commerce and cross-border B2B transactions are on the increase, factoring presents a safe financial vehicle to deal with credit risk, maintain liquidity, and aid in trade finance in emerging markets.
Adoption of Fintech and Digital Platforms
Technology is transforming the factoring sector through simplified operations, greater transparency, and shorter processing times. Digital factoring platforms leverage automation, artificial intelligence, and blockchain technology to evaluate creditworthiness and process transactions faster. These technologies minimize costs and bring factoring closer to businesses of all sizes.

As fintech penetration expands, particularly in emerging markets, factoring services are becoming more secure and scalable, which is leading to higher popularity and penetration into the market. OTP Bank and SVD-Distribution signed the first contract on the provision of factoring services under the OTP Bank and USAID Investment for Business Resilience Activity (previously USAID Financial Sector Reform Activity) joint program to enable financing of Ukrainian businesses in February 2024.
Challenges in the Global Factoring Services Market

Regulatory Complexity and Cross-Border Legal Barriers
Factoring operations are regulated differently in countries, posing operational hurdles to cross-border providers. Various legal frameworks, data protection acts, and documentation requirements may limit smooth factoring transactions. It is especially complicated in cross-border factoring, where there are several jurisdictions involved. The absence of standardization may raise compliance costs, create delays, and discourage prospective users, especially SMEs with limited understanding of cross-border financial regulations and requirements.
Perception of High Costs and Credit Risks
Most companies still view factoring as costly because of fees and interest charged by the service. There is also a concern about reputational risk in sending collections to third-party factors. For factors themselves, assessing and overseeing credit risk, particularly from new or high-risk customers, can be a hindrance. In volatile economic times, defaults on receivables will increase, presenting more risk to factoring firms and perhaps discouraging aggressive market penetration.

Key Players Analysis: Overview, Key Persons, Recent Developments, SWOT Analysis, Revenue Analysis

  • AwanTunai
  • Eurobank Ergasias SA
  • Hitachi Capital (UK) PLC
  • KUKE Finance JSC
  • Deutsche Factoring Bank
  • Barclays PLC
  • BNP Paribas
  • Mizuho Financial Group Inc.
  • RTS Financial Service Inc.

Key Attributes:

Report Attribute Details
No. of Pages 200
Forecast Period 2024 - 2033
Estimated Market Value (USD) in 2024 $4.2 Trillion
Forecasted Market Value (USD) by 2033 $7.6 Trillion
Compound Annual Growth Rate 6.8%
Regions Covered Global


Key Topics Covered:
1. Introduction
2. Research & Methodology
2.1 Data Source
2.2 Research Approach
2.3 Forecast Projection Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges
5. Global Factoring Services Market
5.1 Historical Market Trends
5.2 Market Forecast
6. Market Share Analysis
6.1 By Provider
6.2 By Enterprise Size
6.3 By Application
6.4 By End User
6.5 By Countries
7. Provider
7.1 Banks
7.2 NBFCs
7.3 Enterprise Size
7.4 Large Enterprises
7.5 SMEs
8. Application
8.1 Domestic
8.2 International
9. End User
9.1 Construction
9.2 Manufacturing
9.3 Healthcare
9.4 Transportation and Logistics
9.5 Energy and Utilities
9.6 IT and Telecom
9.7 Staffing
9.8 Other End Users (Staffing Agencies, Advertising, etc.)
10. Countries
10.1 North America
10.1.1 United States
10.1.2 Canada
10.2 Europe
10.2.1 France
10.2.2 Germany
10.2.3 Italy
10.2.4 Spain
10.2.5 United Kingdom
10.2.6 Belgium
10.2.7 Netherlands
10.2.8 Turkey
10.3 Asia Pacific
10.3.1 China
10.3.2 Japan
10.3.3 India
10.3.4 South Korea
10.3.5 Thailand
10.3.6 Malaysia
10.3.7 Indonesia
10.3.8 Australia
10.3.9 New Zealand
10.4 Latin America
10.4.1 Brazil
10.4.2 Mexico
10.4.3 Argentina
10.5 Middle East & Africa
10.5.1 Saudi Arabia
10.5.2 UAE
10.5.3 South Africa
11. Value Chain Analysis
12. Porter's Five Forces Analysis
12.1 Bargaining Power of Buyers
12.2 Bargaining Power of Suppliers
12.3 Degree of Competition
12.4 Threat of New Entrants
12.5 Threat of Substitutes
13. SWOT Analysis
13.1 Strength
13.2 Weakness
13.3 Opportunity
13.4 Threats
14. Pricing Benchmark Analysis
14.1 AwanTunai
14.2 Eurobank Ergasias SA
14.3 Hitachi Capital (UK) PLC
14.4 KUKE Finance JSC
14.5 Deutsche Factoring Bank
14.6 Barclays PLC
14.7 BNP Paribas
14.8 Mizuho Financial Group Inc.
14.9 RTS Financial Service Inc.
15. Key Players Analysis

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