How Big Is the Factoring Services Market | Growth Stats & Trends 2025

Q: What is the overall size of the factoring services market?

The worldwide factoring services market is projected to reach USD 19.6 Billion by 2031.

Q: What is the projected CAGR of the factoring services market?

The factoring services market is expected to grow at a CAGR of 8.50% during 2025–2031.

Q: Which industries are key users of factoring services?

Industries such as manufacturing, logistics, retail, and construction heavily utilize factoring for liquidity.

Q: What are the major types of factoring solutions available?

Recourse factoring, non-recourse factoring, invoice discounting, and reverse factoring are prominent solutions.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

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Code: MTA6017

Publication Date: Jul 2025

How big is the factoring services market?

According to 6Wresearch internal database and industry insights, the Global factoring services market was valued at approximately USD 11.5 Billion in 2024 and is projected to reach USD 19.6 Billion by 2031, growing at a CAGR of 8.50% during the forecast period.

The growth is supported by the increasing adoption of working capital solutions among SMEs, rising worldwide trade, and growing preference for non-bank financing alternatives.

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Key Growth Factors of the Factoring Services Market

Rising demand for improved cash flow and liquidity among businesses
Expansion of cross-border trade and worldwide supply chains
Growing support from governments and trade associations for SME financing
Increasing digitization and automation in factoring processes
Greater acceptance of factoring as a mainstream financial service

Factoring Services Market Trends

The market is witnessing a shift towards digital factoring platforms with streamlined documentation and faster approval times. Recourse and non-recourse factoring are being tailored for industry-specific needs. There is also a growing trend of integrating factoring solutions with enterprise resource planning (ERP) systems for real-time receivables management and risk mitigation.

Emerging Developments in the Factoring Services Market

Emerging developments in the factoring services market are redefining the industry through technological and product-based innovations. Fintech platforms now offer real-time invoice financing, while blockchain ensures trust through secure invoice validation. AI is being used to refine credit risk analysis, increasing efficiency and reducing defaults. At the same time, product diversification, including reverse factoring and supply chain finance, is shifting the traditional landscape.