Global Factoring Market Report 2024: Growing Cross-Border Trade Operations Drive Growth - $5,238.82 Billion by 2028

Dublin, May 31, 2024 (GLOBE NEWSWIRE) - "The Global Factoring Market Report 2024" has been included in the offerings of ResearchAndMarkets.com. The size of the factoring market has undoubtedly increased in recent years, rising from3590.13 billion dollarsin 2023 until3876.8 billion dollarsIn 2024, what corresponds to the compound annual growth rate (CAGR)?8%The sustainable growth observed in the historical period can be explained by the strong economic development in developing countries, the increase in trade operations, the growing number of small and medium-sized enterprises (SMEs), as well as the rising demand for working capital. It is projected that the size of the factoring market will grow to5238.82 billion dollarsby 2028 with CAGR7.8%The expected growth during the forecast period can be attributed to increasing globalization and cross-border transactions, the rise of government support, and the development of the transportation sector.

Significant trends in the factoring market

Among the significant trends expected in the upcoming period, it is worth noting:

• implementation of cloud platforms for factoring;
• integration of environmental, social responsibility, and corporate governance (ESG) aspects;
• increasing the number of strategic partnerships and collaborations.

The expected growth of the factoring market will be driven by an increase in transaction volumes in international trade. Transactions in international trade encompass invoicing, fund collection, and customer service related to the import, export, or transit of goods or services in accordance with specific licensing requirements. Factoring supports companies in the field of international trade by providing them with immediate access to cash through the sale of accounts receivable. This allows them to optimize their credit capabilities and ensure the necessary access to resources for confident competition in global markets.

The role of international trade

It's interesting that in February 2022, the United Nations Conference on Trade and Development (UNCTAD) recorded a record level of global trade, amounting to28.5 trillion dollarsIn 2021, what about25%More than in 2020. This fact highlights the role of increasing international trade in the growth indicators of the factoring market. In the future, support from government bodies will become an important stimulus for the growth of the factoring market.

Many governments around the world are actively promoting the development of the factoring sector by offering innovative solutions that better meet the needs of the industry. For example, in June 2023, the Colombian Association of Electronic Factoring (ASOFACE) organized the "Open Financing" event in collaboration with the financial technology company Floid, aimed at automating the factoring industry in Bogotá, with the support of the Financial Services Cluster, Asobancaria, and the Bogotá Chamber of Commerce. Additionally, in July 2022, the Reserve Bank of India (RBI) launched the TReDS platform, which helps small companies meet their working capital needs through invoice discounting, addressing key financial challenges for SMEs. The increasing government support promises to generate significant demand in the factoring market.

Innovations and technologies in the factoring market

An important trend in the factoring market is the focus on product innovations. Leading companies in this field are striving to implement innovative solutions to maintain their market positions. For example, in December 2022, Kyriba introduced Kyriba Receivables Finance - an advanced factoring solution that simplifies invoice processing and offers a convenient platform for managing payments. This solution enhances cash flow visibility, facilitates monitoring and management of customer accounts, and provides automated payment processing.

The use of artificial intelligence (AI) is also becoming a noticeable trend in the factoring market. Major companies in the factoring industry are utilizing AI to automate routine tasks, which enhances their product offerings. Artificial intelligence is applied to detect fraudulent activities in factoring operations, increasing security and helping businesses and creditors avoid losses. For example, in September 2022, FactorFox Software introduced FactorFox Mobile Optical Character Recognition (OCR) - an AI-based application that allows for quick and accurate scanning of invoices to automate document flow and speed up operations.

Mergers and acquisitions in the factoring market

In January 2022, FundThrough's attempt to acquire BlueVine was aimed at accelerating its expansion strategy in the U.S. market, which doubled the number of clients and expanded the largest accounts receivable financing platform in North America that utilizes AI. BlueVine is a U.S. fintech company that provides factoring solutions for small businesses.

Market statistics and forecasts

The report covers market characteristics, sizes and growth rates, segmentation, regional and country distribution, competitive landscape, market shares, as well as trends and strategies in this field. It highlights the historical market growth and its forecast by geographical regions. The scope of the report includes coverage of markets by type: recourse factoring, non-recourse factoring, as well as by organization size: small and medium enterprises, large enterprises. The report divides the market into categories: international and domestic, and applications: transportation, healthcare, construction, manufacturing, and other industries.

All key countries have been considered, including:

• Australia;
• Brazil;
• China;
• France;
• Germany;
• India;
• Indonesia;
• Japan;
• Russia;
• South Korea;
• United Kingdom;
• USA
• Canada;
• Italy;
• Spain.

In addition, the regional coverage includes the Asia-Pacific region, Western and Eastern Europe, North and South America, the Middle East, and Africa.

Data and report characteristics

Time series cover historical data for the past five years and a ten-year forecast. The data includes market size and growth ratios relative to related markets, GDP shares, and per capita spending. Data segmentation implies the availability of historical data and forecasts by countries and regions, competitor market shares, and market segments. Important characteristics and attributes of the report, such as the number of pages -175- and the forecast period from2024 to 2028The expected market value in 2024 will be3876.8 billion dollarsand the predicted market value by 2028 is -5238.82 billion dollars, with CAGR7.8%.

Company profiles

Company profiles include major institutions such as:

• Societe Generale;
• BNP Paribas;
• China Construction Bank;
• Deutsche Bank;
• HSBC;
• Barclays Bank;
• JP Morgan Chase;
• Mizuho Financial Group;
• Wells Fargo;
• and others.

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