Factoring Market: By Product Type (Recourse and Non-Recourse), By Category Type (Domestic and International),By  Financial Institution (Banks and Non-Banking Financial Institutions), By End Users (Manufacturing, Transport & Logistics, Information Technology, Healthcare, Construction, and Others) and Geography  

Factoring Market size was valued at USD 6,564.3 million in 2023 and is poised to grow at a CAGR of 6.4% in 2024-2030. Invoice factoring is a procedure of backing cash flow by vending their invoices to a third party such as a factoring company or factor, at a discounted rate. Invoice factoring can be given by banks or autonomous finance providers. A factor is a trader that offers financing or cash to businesses by buying their receivables. Invoice factoring helps improve businesses short-term cash requirements by vending receivables in return for cash from the factoring firm. Factoring permits a business to finance its operations with the help of its receivables. In addition, it aids the average time for the collection to be shortened, along with commercial account payable, ensuing a stronger financial assembly for the business. The growing demand for other financing sources for MSMEs can lead to the factoring market growth.

Moreover, improved inventory management and a surge in several factoring industries distributing a blend of financing options are some primary factors that can boost the global factoring market. Apart from these, elevated liquidity for effective working capital management can also accelerate the market in the future. The development in the financial services, banking, and insurance (BFSI) industry, rising understanding, and awareness of supply chain financing advantages, technologies such as blockchain and cryptocurrency in factoring businesses, and growing developments and exclusive identification for complete transactional security, fast funding, and innovative contract abilities can also drive the global market further.

However, some factors such as the slowdown of the global economy, foreign currency limits, archaic regulations, and stamp duties can restrain the growth of the market. Uneven retrieval in different geographies and end markets can hinder the market growth. Development in the international section can create an opportunity for the global factoring market growth.

Factoring Market Key Developments:

• In August 2022, M1xchange, an Invoice discounting platform announced a cash flow-based factoring solution for MSMEs In April 2022, FCI launched Edifactoring 2.0 which is a platform that helps to bridge cross-border factoring