Invoice Factoring in the US - Market Research Report (2014-2029)

Working capital: The flexibility and high volume of accounts receivable aren't likely to offset revenue declines

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

In factoring, businesses sell their unpaid invoices to a factoring company, which then collects the outstanding payment from the customer. Clients enter factoring agreements to mitigate cash flow risk and receive a short-term injection of working capital. Invoice factoring tends to improve working capital access for clients at a faster rate than traditional bank lending, in addition to providing enhanced flexibility.

Operators in this industry specialize in short-term debt financing. Factoring involves a company selling its account receivables to a third party as a means of accessing cash to finance further business activity without having to wait for its debtors to pay them. Companies generate revenue through factor fees, or the difference between the price paid for the invoice and money received from debtors.