Factoring Service Market Report 2025 (Global Edition)

Global Factoring Service Market Report 2025 Market Size Split by Type Outlook: (Construction, Manufacturing, Healthcare, Transportation & Logistics, Energy & Utilities, IT & Telecom, Staffing, Others)...

Factoring Service Market Report Description

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Competitive Landscape of the Factoring Service Market

The factoring service market is highly competitive, with key players offering a range of financing solutions. Traditional factoring companies compete with digital platforms and fintech startups that provide faster, more flexible services. Companies differentiate themselves through pricing, customer service, and speed of funding. The market is evolving with the integration of technology, such as AI and blockchain, to streamline processes, reduce costs, and enhance transparency, driving competition.

In May 2024, ABN AMRO Bank N.V. reached an agreement with Fosun International to acquire Hauck Aufhäuser Lampe, a private banking institution based in Germany. Following the acquisition, Bethmann Bank, the bank’s private banking arm in Germany, is positioned to become a significant player in providing banking solutions to private clients, family-owned enterprises, and institutional clients across the nation. The acquisition was also aimed at setting the bank’s competitive edge and offering the staff of the newly acquired entity a chance to take a lead in the evolving banking landscape in Germany.

(Source:https://www.abnamro.com/en/news/abn-amro-announces-the-acquisition-of-hauck-aufhaeuser-lampe)

In June 2023, Mizuho EMEA introduced the eighth and ninth funds, known as Stratum VIII and IX, under Stratum Investments. Founded in 2018, Stratum Investments is a specialized Managed Account platform focusing on investment in sub-investment-grade loans backed by European private equity.

(Source:https://www.mizuhogroup.com/emea/news/2023/stratum-investments-closes-stratum-viii-and-ix.html)

In January 2023, GE and KUKE, Poland's Export Credit Agency (ECA), unveiled a strategic collaboration in export finance valued at EUR 1 billion (USD 1.06 billion).

This partnership aims to support GE's worldwide energy clients in their efforts to reduce carbon emissions in the energy sector and promote global electrification. Under this joint initiative, GE's operations in Poland will collaborate with KUKE to obtain debt insurance for designated transactions.

(Source:https://kuke.com.pl/en/news-and-insights/ge-secures-agreement-with-polish-export-credit-agency)

Top Companies Market Share in Factoring Service Industry: (In no particular order of Rank)

• altLINE (The Southern Bank Company)
• Barclays Bank PLC
• BNP Paribas
• China Construction Bank Corporation
• Deutsche Factoring Bank
• Eurobank
• Factor Funding Co.
• Hitachi Capital (UK) PLC
• HSBC Group
• ICBC China
• Kuke Finance
• Mizuho Financial Group Inc.
• RTS Financial Service Inc.
• TCI Business Capital
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Factoring Service Market

Which Region Dominates the Factoring Service Market in 2024?

According to Cognitive Market Research, North America currently dominates the Factoring Services market, and the region is expected to have significant growth during the projected period. This is due to its well-established financial infrastructure, high number of small and medium-sized enterprises (SMEs), and a robust demand for working capital solutions.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expected to make significant gains during the projected period, with the greatest compound annual growth rate (CAGR). Countries like China, India, and Japan are key players, with businesses seeking flexible financing solutions to manage cash flow and improve liquidity amid evolving economic conditions.

The current report Scope analyzes Factoring Service Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Factoring Service

According to Cognitive Market Research, the global Factoring Service market size was estimated at USD 4361425.6 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 1744570.24 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.7% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Factoring Service market with a market size of USD 1376465.92 million in 2024 and is projected to grow at a CAGR of 9.5% during the forecast period due to the growing demand for working capital solutions.
• The Canada Factoring Service market had a market share of USD 209348.43 million in 2024 and is projected to grow at a CAGR of 10.5% during the forecast period due to the rising number of startups and entrepreneurs.
• The Mexico Factoring Service market is projected to witness growth at a CAGR of 10.2% during the forecast period, with a market size of USD 158755.89 million in 2024.

Europe Factoring Service

According to Cognitive Market Research, the global Factoring Service market size was estimated at USD 4361425.6 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 1308427.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.0% from 2024 to 2031.

• The United Kingdom Factoring Service market had a market share of USD 219815.85 million in 2024 and is projected to grow at a CAGR of 10.8% during the forecast period. In the UK, Factoring Service sales witness an upswing due to the growing preference for alternative financing solutions.
• The France Factoring Service market is projected to witness growth at a CAGR of 9.2% during the forecast period, with a market size of USD 120375.35 million in 2024.
• According to Cognitive Market Research, the German Factoring Service market size was valued at USD 259068.68 million in 2024 and is projected to grow at a CAGR of 10.2% during the forecast period. In Germany, Factoring Service surged due to the expansion of international trade and cross-border transactions.
• The Italy Factoring Service market is projected to witness growth at a CAGR of 9.4% during the forecast period, with a market size of USD 112524.78 million in 2024.
• The Russia Factoring Service market is projected to witness growth at a CAGR of 9.0% during the forecast period, with a market size of USD 202806.29 million in 2024.
• The Spain Factoring Service market is projected to witness growth at a CAGR of 9.1% during the forecast period with a market size of USD 107291.07 million in 2024
• The Luxembourg Factoring Service market is projected to witness growth at a CAGR of 10.1% during the forecast period, with a market size of USD 40561.26 million in 2024.
• The Portugal Factoring Service market is projected to witness growth at a CAGR of 9.8% during the forecast period, with a market size of USD 27476.98 million in 2024.
• The Greece Factoring Service market is projected to witness growth at a CAGR of 10.3% during the forecast period, with a market size of USD 15701.13 million in 2024.
• The Rest of Europe's Factoring Service market is projected to witness growth at a CAGR of 8.7% during the forecast period, with a market size of USD 202806.29 million in 2024.

Asia Pacific Factoring Service

According to Cognitive Market Research, the global Factoring Service market size was estimated at USD 4361425.6 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 1003127.89 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.5% from 2024 to 2031.

• According to Cognitive Market Research, the China Factoring Service market size was valued at USD 451407.55 million in 2024 and is projected to grow at a CAGR of 13.0% during the forecast period. Factoring Services surged in China due to the high demand for working capital among SMEs.
• The Japan Factoring Service market is projected to witness growth at a CAGR of 12.0% during the forecast period, with a market size of USD 138431.65 million in 2024.
• The India Factoring Service market had a market share of USD 120375.35 million in 2024 and is projected to grow at a CAGR of 15.3% during the forecast period due to the limited access to traditional financing options.
• The South Korean Factoring Service market is projected to witness growth at a CAGR of 12.6% during the forecast period, with a market size of USD 100312.79 million in 2024.
• The Australian Factoring Service market is projected to witness growth at a CAGR of 13.2% during the forecast period, with a market size of USD 52162.65 million in 2024.
• The South East Asia Factoring Service market is projected to witness growth at a CAGR of 14.5% during the forecast period, with a market size of USD 69215.82 million in 2024.
• The Rest of Asia Pacific Factoring Service market is projected to witness growth at a CAGR of 13.3% during the forecast period, with a market size of USD 71222.08 million in 2024.

South America Factoring Service

According to Cognitive Market Research, the global Factoring Service market size was estimated at USD 4361425.6 Million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD 218071.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.9% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Factoring Service market size was valued at USD 93334.51 million in 2024 and is projected to grow at a CAGR of 11.5% during the forecast period. Factoring Services flourished in Brazil due to limited access to traditional financing options.
• Argentina's Factoring Service market had a market share of USD 36635.98 million in 2024 and is projected to grow at a CAGR of 11.8% during the forecast period due to economic instability and cash flow challenges.
• Colombia Factoring Service market is projected to witness growth at a CAGR of 10.7% during the forecast period, with a market size of USD 19408.34 million in 2024.
• Peru Factoring Service market is projected to witness growth at a CAGR of 11.1% during the forecast period, with a market size of USD 17881.84 million in 2024.
• Chile Factoring Service market is projected to witness growth at a CAGR of 11.2% during the forecast period, with a market size of USD 15701.13 million in 2024.
• The Rest of Latin America's Factoring Service market is projected to witness growth at a CAGR of 10.0% during the forecast period, with a market size of USD 35109.48 million in 2024.

Middle East and Africa Factoring Service

According to Cognitive Market Research, the global Factoring Service market size was estimated at USD 4361425.6 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 87228.51 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.2% from 2024 to 2031..

• The GCC Countries Factoring Service market is projected to witness growth at a CAGR of 12.0% during the forecast period, with a market size of USD 37333.80 million in 2024. Factoring Service sales flourish due to the growth in small and medium-sized enterprises (SMEs).
• The Egypt Factoring Service market is projected to witness growth at a CAGR of 11.5% during the forecast period, with a market size of USD 9158.99 million in 2024.
• The South Africa Factoring Service market is projected to witness growth at a CAGR of 12.2% during the forecast period, with a market size of USD 13782.10 million in 2024. Factoring Service sales flourished in South Africa due to rising trade and export activities.
• The Turkey Factoring Service market is projected to witness growth at a CAGR of 10.7% during the forecast period, with a market size of USD 7501.65 million in 2024.
• The Nigeria Factoring Service market is projected to witness growth at a CAGR of 10.3% during the forecast period, with a market size of USD 9158.99 million in 2024.
• The Rest of the MEA Factoring Service market is projected to witness growth at a CAGR of 10.2% during the forecast period, with a market size of USD 10292.96 million in 2024.

Factoring Service Market Analysis

How are Segments Performing in the Global Factoring Service Market?

Factoring Service Market Industry Vertical Segment Analysis

According to Cognitive Market Research, manufacturing is likely to dominate the Factoring Service Market over the forecast period due to its long production cycles and delayed customer payments. Manufacturers often rely on factoring to maintain cash flow, especially when dealing with large orders or clients who pay on extended terms. Factoring helps them avoid liquidity issues, making it a preferred financing solution.

healthcare is the fastest-growing segment in the Factoring Service Market, as medical providers often face delayed payments from insurance companies and patients. Factoring helps healthcare organizations, such as hospitals and clinics, maintain cash flow by quickly converting accounts receivable into working capital, enabling them to manage operations and meet financial obligations.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Factoring Service Industry. Request a Free Sample PDF!

Factoring Service Market Application Segment Analysis

According to Cognitive Market Research, the domestic segment holds the largest share of the market due to its focus on local businesses, offering more accessible and flexible financing options. Companies prefer domestic factoring for easier communication, faster transactions, and lower risks, as factors are more familiar with the local economic conditions and customer creditworthiness, driving regional growth.

The factoring service market is increasingly international, with companies expanding their operations across borders to meet the growing demand for financing in global trade. Factors provide cross-border solutions for businesses dealing with international clients, leveraging global networks to offer liquidity and mitigate risks associated with international transactions and currencies.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Factoring Service Provider Outlook: Segment Analysis

Factoring Service Market Provider Segment Analysis

According to Cognitive Market Research, the banks segment holds the largest market share by leveraging their established financial infrastructure, extensive customer networks, and capital resources. They offer factoring services alongside traditional lending, providing businesses with reliable, secure financing options. Banks also benefit from regulatory advantages and trusted reputations, making them a preferred choice for larger enterprises.

In the Factoring Service market, the rapidly growing sector is the NBFCs category, by provides alternative financing options to businesses, particularly small and medium-sized enterprises (SMEs). NBFCs offer flexible factoring solutions, catering to clients who may not qualify for traditional bank financing, thus expanding market access and growth.

• Banks
• NBFCs

Factoring Service Enterprise Size Outlook: Segment Analysis

Factoring Service Market Enterprise Size Segment Analysis

According to Cognitive Market Research, the large enterprise segment dominates the market due to their established creditworthiness, allowing them to secure favourable terms and lower fees. Their substantial invoice volumes make factoring a cost-effective solution to manage cash flow. Additionally, they have greater access to diverse financing options, enabling them to leverage factoring services more efficiently.

SMEs are projected to be the fastest-growing segment in the Factoring Service market due to their frequent cash flow challenges and reliance on prompt payments. Factoring allows SMEs to access immediate liquidity, enabling them to cover operational costs, manage growth, and avoid debt while bypassing traditional lending hurdles.

• Large Enterprises
• SMEs

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

Author's Conclusion