The Global Reverse Factoring Market size is expected to reach $1,041.5 billion by 2029, rising at a market growth of 11.3% CAGR during the forecast period.
Healthcare is a promising sector for reverse factoring because of company's increased investment in R&D activities to strengthen its product portfolio and market position. Hence, it is expected to capture approximately 1/5thshare of the market by 2029. Healthcare industry manufacturers are undertaking a number of activities to grow their business operations. These programs, however, are costly and frequently in need of finance. Reverse factoring can assist healthcare companies in making the needed modifications to their business models and growing their operations when they are having trouble expanding their operations. The company's cash position has also improved via reverse factoring. Some of the factors impacting the market are an increase in the demand for safety and security in supply-chain operations, rising demand for reverse factoring among SMEs in emerging nations, and issues with the adoption of reverse factoring.
A rise in the demand for supply chain finance is being witnessed as a result of market manipulation. This can result in things like a loss of investor confidence, damage to market integrity, fraudulent behavioral patterning, as well as insider company pressure on financial institutions. Additionally, it gives the ability to collate and monitor multiple structured and unstructured data sets together and the ability to provide financial security to importers and exporters in the form of supply risk and payment risk. The market is expanding due to rising investments in reverse factoring financing technologies for tracking pre- and post-trade activities, as well as investigating cross-asset and cross-market exchanges within a limited number of firms. Additionally, several fintech companies are implementing supply chain finance systems to increase their income potential and boost customer satisfaction, which is driving the use of supply chain finance.
However, even though reverse factoring is common in some nations, it is evident that the practice's success is tied to the regulatory, legal, and tax difficulties that may prevent a factoring organization from joining the market. It is possible that the tax deductibility of interest on supply chain financing arrangements, the treatment of VAT, the difficulties of bankruptcy law, and cross-border capital controls are some of the most crucial problems that need to be handled once and for all.
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.
Healthcare is a promising sector for reverse factoring because of company's increased investment in R&D activities to strengthen its product portfolio and market position. Hence, it is expected to capture approximately 1/5thshare of the market by 2029. Healthcare industry manufacturers are undertaking a number of activities to grow their business operations. These programs, however, are costly and frequently in need of finance. Reverse factoring can assist healthcare companies in making the needed modifications to their business models and growing their operations when they are having trouble expanding their operations. The company's cash position has also improved via reverse factoring. Some of the factors impacting the market are an increase in the demand for safety and security in supply-chain operations, rising demand for reverse factoring among SMEs in emerging nations, and issues with the adoption of reverse factoring.
A rise in the demand for supply chain finance is being witnessed as a result of market manipulation. This can result in things like a loss of investor confidence, damage to market integrity, fraudulent behavioral patterning, as well as insider company pressure on financial institutions. Additionally, it gives the ability to collate and monitor multiple structured and unstructured data sets together and the ability to provide financial security to importers and exporters in the form of supply risk and payment risk. The market is expanding due to rising investments in reverse factoring financing technologies for tracking pre- and post-trade activities, as well as investigating cross-asset and cross-market exchanges within a limited number of firms. Additionally, several fintech companies are implementing supply chain finance systems to increase their income potential and boost customer satisfaction, which is driving the use of supply chain finance.
However, even though reverse factoring is common in some nations, it is evident that the practice's success is tied to the regulatory, legal, and tax difficulties that may prevent a factoring organization from joining the market. It is possible that the tax deductibility of interest on supply chain financing arrangements, the treatment of VAT, the difficulties of bankruptcy law, and cross-border capital controls are some of the most crucial problems that need to be handled once and for all.
Category Outlook
Based on category, the market is characterized into domestic and international. The domestic segment garnered the highest revenue share in the market in 2022. Due to SCF services' effectiveness, domestic MSMEs are increasingly adopting them, which might be related to the segment's growth. The majority of suppliers worldwide are MSMEs, or Micro, Small, and Medium-sized Enterprises. Buyers' late payments make it challenging for suppliers to maintain reliable manufacturing schedules. The problem is made worse by the suppliers' lack of access to alternative sources of financing, which has an impact on their overall company operations.Financial Institution Outlook
On the basis of financial institution, the market is classified into banks and non-banking financial institutions. The non-banking financial institutions segment recorded a significant revenue share in the market in 2022. The non-banking financial institutions (NBFIs) provide enhanced flexibility and transparency in their reverse factoring solutions and assist various firms in coping with the changing geopolitical climate and supply chain. These actions generate significant potential for the industry. To help their domestic as well as international clients' trade, NBFIs offer trade knowledge through digital solutions.End-use Outlook
By end-use, the market is divided into manufacturing, transport & logistics, information technology, healthcare, construction, and others (retail, food & beverages, others). The manufacturing segment witnessed the maximum revenue share in the market in 2022. By giving suppliers the option of getting early invoice payments along with extending the supplier payment terms of the manufacturer, reverse factoring enhances cash flow. Supply chain financing services have a promising future since manufacturing firms in a variety of industries, including chemical, welding, pallet, metal & machinery, and plastics & polymers, use reverse factoring services.Regional Outlook
Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment acquired the highest revenue share in the market in 2022. Increased company activity levels, the availability of timely expert assistance for financial management from the majority of the enterprises, and the strong penetration of the market participants in this region may all be credited for the significant growth of the market in Europe. In addition, positive market prospects are being created in Europe by encouraging government efforts to help startups raise public and private finance and focus on existing reverse factoring solution providers on providing alternative financial aid by purchasing SMEs' pending bills.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 Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
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
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Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 3. Global Reverse Factoring Market by Category
Chapter 4. Global Reverse Factoring Market by Financial Institution
Chapter 5. Global Reverse Factoring Market by End-use
Chapter 6. Global Reverse Factoring Market by Region
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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