Factoring Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025

Factoring Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025

  • October 2020 •
  • 139 pages •
  • Report ID: 5981478 •
  • Format: PDF
The global factoring market grew at a CAGR of around 12% during 2014-2019.

Factoring, or debtor financing, refers to the process of purchasing a debt or invoice from an organization at discounted prices to allow profits to the buyer upon settlement. It is an asset-based financial arrangement between a financial institution, or a factor, and the client, which states the terms and conditions of exchanging trade debts. Recourse, non-recourse, disclosed, discourse, domestic, export advance and maturity factoring are some of the commonly adopted forms of the process. They relieve the first party off the debts and provides them with the essential working capital to continue trading, while the buyer, or factor, capitalizes on the profits when the debt is paid.

Significant growth in the banking, financial services and insurance (BFSI) industry is one of the key factors creating a positive impact on the market growth. Furthermore, the increasing requirement for alternative sources of financing for micro, small and medium enterprises (MSME) is providing a thrust to the market growth. Factoring enables the business to obtain working capital loans and mitigate credit risks. In line with this, increasing awareness regarding the benefits of supply chain financing, such as factoring, is also contributing to the market growth. Additionally, the advent of blockchain technology and cryptocurrency in factoring services is acting as another growth-inducing factor. These advanced solutions automate each invoice with unique identification for fast funding, complete transactional security and smart contract facilities. Other factors, including the increasing utilization of digital platforms in trade financing, along with the rising cross-border trade activities, are anticipated to drive the market further. Looking forward, the analyst expects the global factoring market to continue its strong growth during the next five years.

Key Market Segmentation:
the analyst provides an analysis of the key trends in each sub-segment of the global factoring market report, along with forecasts for growth at the global, regional and country level from 2020-2025. Our report has categorized the market based on region, type, organization size and application.

Breakup by Type:
International
Domestic

Breakup by Organization Size:
Small and Medium Enterprises
Large Enterprises

Breakup by Application:
Transportation
Healthcare
Construction
Manufacturing
Others

Breakup by Region:
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:
The report has also analysed the competitive landscape of the market with some of the key players being Advanon AG (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. and The Southern Banc Company Inc.

Key Questions Answered in This Report:
How has the global factoring market performed so far and how will it perform in the coming years?
What has been the impact of COVID-19 on the global factoring market?
What are the key regional markets?
What is the breakup of the market based on the type?
What is the breakup of the market based on the organization size?
What is the breakup of the market based on the application?
What are the various stages in the value chain of the industry?
What are the key driving factors and challenges in the industry?
What is the structure of the global factoring market and who are the key players?
What is the degree of competition in the industry?