Factoring Services Market Size Worth $5,384.0 Billion By 2027 | CAGR: 7.5%: Grand View Research, Inc.

SAN FRANCISCO, Nov. 9, 2020 /PRNewswire/ -- The global factoring services market size is expected to reach USD 5,384.0 billion by 2027, according to a new study conducted by Grand View Research, Inc. It is projected to register a CAGR of 7.5% from 2020 to 2027. The rapid economic growth in developing economies and the rising demand for factoring as an alternative form of financing are fostering growth. Factor financing has proved to be beneficial in various regions across the globe for Small and Medium Enterprises (SMEs), promoting the entrepreneurial economy and strengthening economic growth. Moreover, the technological enhancement in the form of blockchain adoption and the provision of safe and secured financing services are also expected to propel the market growth over the forecast period.

Key suggestions from the report:

• The international segment is expected to register the highest CAGR over the forecast period owing to the increasing demand for factoring services from developing nations that focus on increasing their international trade through export and import
• The non-recourse segment is anticipated to register the highest CAGR over the forecast period. Advantages such as full credit cover offered by the financing company are driving the demand for non-recourse factoring amongst SMEs across the world
• The non-banking financial institution segment is expected to register the fastest CAGR over the forecast period. The growth of fintech companies and non-banking financial startups, owing to ease of government regulations in some developing countries, is the prime factor propelling the segment growth
• The healthcare segment is anticipated to register the highest CAGR over the forecast period. The complications of insurance and complex layers of bureaucracies that delay the payment of medical bills of medical companies or professionals are likely to accelerate the demand for factoring in the segment growth
• Asia Pacific is anticipated to emerge as the fastest-growing regional market owing to the rapid growth of economies vis-à-vis infrastructural and industrial growth in the region. The region comprises two most-populated countries, namely China and India, where the demand for factoring services is higher among SMEs. Moreover, China is the key exporter of electronic components, chemical materials, and many other industrial products.

Read 109 page research report with ToC on "Factoring Services Market Size, Share & Trends Analysis Report By Category (Domestic, International), By Type (Recourse, Non-recourse), By Financial Institution, By End Use, By Region, And Segment Forecasts, 2020 – 2027" at: https://www.grandviewresearch.com/industry-analysis/factoring-services-market

Fintech businesses are offering factoring services to SMEs and freelancers to ease their financial pressure caused due to delayed payments. Factoring services are likely to become an essential part of supply chain networks owing to the simplification of the services and their financial flexibility. Moreover, there is a rising interest among enterprise owners to seek new and non-conventional means of finance for their companies. The companies and organizations such as Factors Chain International (FCI) are creating awareness among businesses. This alternative form of financing is likely to be adopted and accepted for factoring receivables.

Account receivable financing is becoming more secure owing to several laws. The governments of various countries have developed legal frameworks for the use of electronic invoices. This has helped governments in collecting tax efficiently, providing efficient factoring tools, and reducing frauds. Moreover, governments are also supporting the adoption of the state-of-the-art receivables platform based on new blockchain or Distributed Ledger Technology (DLT). However, factors such as a perception of the high-interest rates, lack of awareness, and cumbersome documentation processes are hindering the demand for factoring services. Banks and financial companies are constantly trying to upgrade their expertise on the technological and operational levels for providing cost-effective services to their customers and boosting the demand for their services.

Grand View Research has segmented the global factoring services market based on category, type, financial institution, end-use, and region:

• Factoring Services Category Outlook (Revenue, USD Billion, 2016 – 2027)
• Domestic
• International
• Factoring Services Type Outlook (Revenue, USD Billion, 2016 - 2027)
• Recours
• Non-recourse
• Factoring Services Financial Institution Outlook (Revenue, USD Billion, 2016 - 2027)
• Banks
• Non-Banking Financial Institutions
• Factoring Services End-use Outlook (Revenue, USD Billion, 2016 - 2027)
• Manufacturing
• Transport & Logistics
• Information Technology
• Healthcare
• Construction
• Others
• Factoring Services Regional Outlook (Revenue, USD Billion, 2016 - 2027)
• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Italy
• Asia Pacific
• China
• India
• Japan
• Singapore
• Latin America
• Brazil
• Mexico
• Chile
• Middle East & Africa (MEA)

List of Key Players of the Factoring Services Market

• Barclays Bank PLC
• BNP Paribas
• China Construction Bank Corporation
• Deutsche Factoring Bank
• Eurobank
• Hitachi Capital (UK) PLC
• HSBC Group
• ICBC China
• Kuke Finance
• Mizuho Financial Group, Inc.

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About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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