The Asia Pacific factoring services market is expected to reach USD 2.31 trillion by 2030, registering a CAGR of 11.9% from 2024 to 2030. Increasing demand for factoring services in SMEs is driving the market growth. Factoring services provide businesses with easy operation, offering immediate access to cash against invoices. With factoring services adopting new technologies, such as artificial intelligence (AI), machine learning (ML), natural language programming (NLP), and blockchain technology, to secure cross-border payments, factoring companies can offer tailored financial solutions to businesses based on their operational needs.
Fintech companies have developed online platforms that allow businesses to submit their invoices for factoring and receive loan decisions quickly. Automation, cloud technology, and real-time transaction systems have sped up the factoring process, reduced operating costs, and improved transparency, leading to faster fund access for firms. In addition, banks prioritize customer experience by redesigning payment journeys and creating omnichannel experiences. With the help of technology and customer-centric approaches, banks are working toward transforming their operations and expanding their customer bases across numerous verticals. For instance, in August 2023, India Exim Bank announced the support for small- and medium-sized businesses (SMEs) in the country. The bank's new branch in GIFT City, under the International Financial Services Centre (IFSC), will provide international factoring services to MSMEs. This initiative aims to improve MSMEs' access to working capital, potentially boosting their participation in global trade.
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Fintech companies have developed online platforms that allow businesses to submit their invoices for factoring and receive loan decisions quickly. Automation, cloud technology, and real-time transaction systems have sped up the factoring process, reduced operating costs, and improved transparency, leading to faster fund access for firms. In addition, banks prioritize customer experience by redesigning payment journeys and creating omnichannel experiences. With the help of technology and customer-centric approaches, banks are working toward transforming their operations and expanding their customer bases across numerous verticals. For instance, in August 2023, India Exim Bank announced the support for small- and medium-sized businesses (SMEs) in the country. The bank's new branch in GIFT City, under the International Financial Services Centre (IFSC), will provide international factoring services to MSMEs. This initiative aims to improve MSMEs' access to working capital, potentially boosting their participation in global trade.
Asia Pacific Factoring Services Market Report Highlights
- Based on category, the domestic segment led the market with the largest revenue share of 72.4% in 2023 and is expected to continue the trend over the forecast period. Asia Pacific has emerging SMEs, mainly in the manufacturing and construction sectors, which are entering global trade and are the driving factor for segment growth
- The recourse type segment held the largest revenue share in 2023. Recourse type of factoring allows flexibility in financing options and the ability to access immediate cash flow by converting accounts receivable into working capital
- Based on financial institutions, the banks segment held the largest share in 2023. Banks are financial institutions governed by rules & regulations. They are the first choice for factoring services and can provide larger funds to businesses
- The healthcare end-use segment is expected to grow at the fastest CAGR over the forecast period. The segment has witnessed a growing demand in health insurance facilities in the billing process where the patient bills are paid by a third party. Clinics and healthcare institutions are expected to witness a growing demand for factoring services
- India is expected to grow at the fastest CAGR over the forecast period. India has expanded global trade with many SMEs participating in exports and imports
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Table of Contents
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
Chapter 3. Asia Pacific Factoring Services Market Variables, Trends & Scope
Chapter 4. Asia Pacific Factoring Services Market: Category Estimates & Trend Analysis
Chapter 5. Asia Pacific Factoring Services Market: Type Estimates & Trend Analysis
Chapter 6. Asia Pacific Factoring Market: Financial Institution Estimates & Trend Analysis
Chapter 7. Asia Pacific Factoring Services Market: End-use Estimates & Trend Analysis
Chapter 8. Asia Pacific Factoring Services Market: Country Estimates & Trend Analysis
Chapter 9. Competitive Landscape
List of Tables
List of Figures
Companies Mentioned
- altLINE
- Barclays Bank PLC
- DBS Bank Ltd
- China Construction Bank Corporation
- Deutsche Factoring Bank
- SBI Global Factors Limited.
- Exim Finserve
- HSBC Group
- ICBC China
- Mizuho Financial Group, Inc.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 90 |
| Published | June 2024 |
| Forecast Period | 2023 - 2030 |
| Estimated Market Value ( USD | $ 1.08 Trillion |
| Forecasted Market Value ( USD | $ 2.31 Trillion |
| Compound Annual Growth Rate | 11.9% |
| Regions Covered | Asia Pacific |
| No. of Companies Mentioned | 10 |
