Dublin, Aug. 05, 2022 (GLOBE NEWSWIRE) — The “Factoring Services Market Size, Share and Trend Analysis Report by Category (Domestic, International), Type (Recourse, Non-Recourse), Financial Institution, End Use, Region and segment forecast, 2022-2030″ report has been added to from ResearchAndMarkets.com offer.
The global factoring services market size is expected to reach USD 7,005.90 billion by 2030, registering a CAGR of 8.8% from 2022 to 2030. The market growth can be attributed to increasing trade accounts open and cross-border businesses. The expanding manufacturing industry in Asian countries and growing need of startups and SMEs for another source of funding is further driving the growth of the market.
Technologies such as blockchain are widely implemented in the funding process to reduce operational costs and enhance security. For example, Tallysticks, an international trade solutions company, uses blockchain technology to provide advanced data security and full transparency throughout the factoring process. The company offers a simple automated invoice financing process with a strong credit reporting system.
Factoring services can be customized according to various customer requirements to meet their unique business needs. Unlike bank loans, these services are based on the current value of the sales ledger rather than historical management information. In addition, they do not lead to an increase in liabilities since it is a sale transaction and not a loan. As a result, they are becoming a popular choice among businesses.
Meanwhile, factors such as archaic regulations, foreign exchange restrictions, and stamp duties are likely to hamper the growth of the market. However, increasing attention from regulators to data management and the widespread adoption of real-time payment networks should help reduce the complexity of trade finance. Increased demand for drafting appropriate laws to govern financial transactions such as the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Secured Transactions is also expected to drive the market growth over the coming years .
Factoring Services Market Report Highlights
- The international segment is expected to register a considerable CAGR of 9.4% during the forecast period owing to the rapid growth in trade among emerging economies such as China, India and Thailand.
- The non-recourse segment is expected to witness considerable growth over the forecast period. Non-recourse service providers perform thorough credit checks and offer credit protection against bad debts.
- The banking segment accounted for the largest market share in 2021. A factoring process is fully regulated by banks and the absence of a middleman helps reduce the costs involved.
- The healthcare segment is expected to grow at a considerable CAGR of 10.5% during the forecast period. Healthcare companies provide advance payments to third-party payers and offer assistance to cover the cost of equipment rental.
- Asia-Pacific is expected to register the highest CAGR of 11.1% due to the growth of infrastructure and industry in the region. Moreover, the demand for factoring services is higher among SMEs in India and China.
Main topics covered:
Chapter 1 Methodology and Scope
Chapter 2 Executive Summary
Chapter 3 Factoring Services Industry Outlook
Chapter 4 Factoring Services Market: Category Segment Analysis
Chapter 5 Factoring Services Market: Type Segment Analysis
Chapter 6 Factoring Services Market: Financial Institutions Segment Analysis
Chapter 7 Factoring Services Market: End-Use Segment Analysis
Chapter 8 Factoring Services Market: Regional Segment Analysis
Chapter 9 Competitive Analysis
Chapter 10 Competitive Landscape
- Barclays Bank PLC.
- BNP Paribas
- China Construction Bank Corporation
- Deutsche Factoring Bank
- Hitachi Capital (UK) PLC
- HSBC Group
- ICBC China
- Kuke Finance
- Mizuho Financial Group, Inc.
For more information on this report, visit https://www.researchandmarkets.com/r/84l4or