The Asia Pacific Reverse Factoring Market should witness market growth of 12.1% CAGR during the forecast period (2023-2029).
Over the past few years, trade receivables factoring has grown in prominence, with recent years seeing a greater emphasis on it. Key factors influencing this rise include a progressive switch from open account practices to commercial credit with bank backing. A more traceable, and thus safer, supply chain financing premise is being used as the basis for factoring in the banking system. The general unwillingness of numerous financial institutions to offer short-term credit without collateral has also expedited the adoption of financing mechanisms like reverse factoring.
This financing mechanism is also being used because of a number of specific advantages it offers, and because it caters to small & medium-sized enterprises (SMEs) in particular industry sectors, reverse factoring has received favorable feedback from the corporate community as a component of the factoring spectrum of services.
The advantages of reverse factoring for the supplier are more than apparent. It facilitates access to a credit line that allows invoices to be converted into new funds without committing other tangible collateral; access to more beneficial rates negotiated by the buyers. It also offers some other side benefits, including the potential for free insurance against the buyer's default and space for additional ancillary operations with the factor's main banking group.
Asia Pacific hosts several global trade hubs. Approximately fifty percent of the total imports of intermediate supplies into Asia are now made up, directly or indirectly, of China, which has now emerged as the most significant export market for intermediate goods for several of its Asian trading partners. Additionally, 20-25% of all capital goods exported from Japan and Korea are bound for China.
China's importance as a supplier has also expanded quickly. It currently makes up about 30% of intermediate items sent to Asia, compared to 15% a decade ago. Due to Asia's high level of vertical integration, the price of intermediate inputs can make up a sizeable portion of exporters' overall costs. This increases the need for safety and security parameters throughout the supply chain. Thus, as a result of all these factors, the regional market is bound to grow throughout the forecast period.
The China market dominated the Asia Pacific Reverse Factoring Market by Country in 2022 and would continue to be a dominant market till 2029; thereby, achieving a market value of $56 Billion by 2029. The Japan market is showcasing a CAGR of 11.4% during (2023-2029). Additionally, The India market would experience a CAGR of 13.1% during (2023-2029).
Based on Category, the market is segmented into Domestic and International. Based on Financial Institution, the market is segmented into Banks and Non-banking Financial Institutions. Based on End-use, the market is segmented into Manufacturing, Transport & Logistics, Information Technology, Healthcare, Construction and Others. Based on countries, the market is segmented into China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include HSBC Holdings plc, Barclays PLC, JPMorgan Chase & Co., Banco Bilbao Vizcaya Argentaria SA, Deutsche Factoring Bank GmbH & Co. KG (Deutsche Leasing), Drip Capital Inc., PrimeRevenue, Inc., Trade Finance Global, Tradewind GmbH, and Credit Suisse Group AG.
Over the past few years, trade receivables factoring has grown in prominence, with recent years seeing a greater emphasis on it. Key factors influencing this rise include a progressive switch from open account practices to commercial credit with bank backing. A more traceable, and thus safer, supply chain financing premise is being used as the basis for factoring in the banking system. The general unwillingness of numerous financial institutions to offer short-term credit without collateral has also expedited the adoption of financing mechanisms like reverse factoring.
This financing mechanism is also being used because of a number of specific advantages it offers, and because it caters to small & medium-sized enterprises (SMEs) in particular industry sectors, reverse factoring has received favorable feedback from the corporate community as a component of the factoring spectrum of services.
The advantages of reverse factoring for the supplier are more than apparent. It facilitates access to a credit line that allows invoices to be converted into new funds without committing other tangible collateral; access to more beneficial rates negotiated by the buyers. It also offers some other side benefits, including the potential for free insurance against the buyer's default and space for additional ancillary operations with the factor's main banking group.
Asia Pacific hosts several global trade hubs. Approximately fifty percent of the total imports of intermediate supplies into Asia are now made up, directly or indirectly, of China, which has now emerged as the most significant export market for intermediate goods for several of its Asian trading partners. Additionally, 20-25% of all capital goods exported from Japan and Korea are bound for China.
China's importance as a supplier has also expanded quickly. It currently makes up about 30% of intermediate items sent to Asia, compared to 15% a decade ago. Due to Asia's high level of vertical integration, the price of intermediate inputs can make up a sizeable portion of exporters' overall costs. This increases the need for safety and security parameters throughout the supply chain. Thus, as a result of all these factors, the regional market is bound to grow throughout the forecast period.
The China market dominated the Asia Pacific Reverse Factoring Market by Country in 2022 and would continue to be a dominant market till 2029; thereby, achieving a market value of $56 Billion by 2029. The Japan market is showcasing a CAGR of 11.4% during (2023-2029). Additionally, The India market would experience a CAGR of 13.1% during (2023-2029).
Based on Category, the market is segmented into Domestic and International. Based on Financial Institution, the market is segmented into Banks and Non-banking Financial Institutions. Based on End-use, the market is segmented into Manufacturing, Transport & Logistics, Information Technology, Healthcare, Construction and Others. Based on countries, the market is segmented into China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include HSBC Holdings plc, Barclays PLC, JPMorgan Chase & Co., Banco Bilbao Vizcaya Argentaria SA, Deutsche Factoring Bank GmbH & Co. KG (Deutsche Leasing), Drip Capital Inc., PrimeRevenue, Inc., Trade Finance Global, Tradewind GmbH, and Credit Suisse Group AG.
Scope of the Study
By Category
- Domestic
- International
By Financial Institution
- Banks
- Non-banking Financial Institutions
By End-use
- Manufacturing
- Transport & Logistics
- Information Technology
- Healthcare
- Construction
- Others
By Country
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
Key Market Players
List of Companies Profiled in the Report:
- HSBC Holdings plc
- Barclays PLC
- JPMorgan Chase & Co.
- Banco Bilbao Vizcaya Argentaria SA
- Deutsche Factoring Bank GmbH & Co. KG (Deutsche Leasing)
- Drip Capital Inc.
- PrimeRevenue, Inc.
- Trade Finance Global
- Tradewind GmbH
- Credit Suisse Group AG
Unique Offerings
- Exhaustive coverage
- The highest number of Market tables and figures
- Subscription-based model available
- Guaranteed best price
- Assured post sales research support with 10% customization free
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 3. Asia Pacific Reverse Factoring Market by Category
Chapter 4. Asia Pacific Reverse Factoring Market by Financial Institution
Chapter 5. Asia Pacific Reverse Factoring Market by End-use
Chapter 6. Asia Pacific Reverse Factoring Market by Country
Chapter 7. Company Profiles
Companies Mentioned
- HSBC Holdings plc
- Barclays PLC
- JPMorgan Chase & Co.
- Banco Bilbao Vizcaya Argentaria SA
- Deutsche Factoring Bank GmbH & Co. KG (Deutsche Leasing)
- Drip Capital Inc.
- PrimeRevenue, Inc.
- Trade Finance Global
- Tradewind GmbH
- Credit Suisse Group AG
Methodology
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