Debt Financing Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The debt financing market size has grown strongly in recent years. It will grow from $21.12 billion in 2024 to $22.45 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to economic growth, globalization, entrepreneurial activities, real estate development, government stimulus programs.

The debt financing market size is expected to see strong growth in the next few years. It will grow to $30.1 billion in 2029 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to climate change initiatives, healthcare sector growth, renewable energy projects, government infrastructure spending, global trade expansion. Major trends in the forecast period include sustainable and green financing, low-interest rates and monetary policies, technology-driven lending platforms, covenant-lite loan structures, innovation and research funding.

The expansion in the number of small businesses is anticipated to drive the growth of the debt financing market in the foreseeable future. Small businesses, defined by their limited employee count and revenue compared to larger enterprises, benefit from debt financing as it offers access to essential capital without relinquishing ownership. This financial mechanism empowers them to fuel their growth, innovate products, and scale their operations while retaining control over their business affairs. For example, as of August 2022, the Small Business Administration (SBA) Office of Advocacy reported a 1.98% increase in small businesses, rising from 32,540,953 in 2021 to 33,185,550 in 2022. These small enterprises collectively employ 61.7 million Americans, constituting 46.4% of private sector employees, underlining their significant contribution to the economy. Therefore, the burgeoning number of small businesses is poised to fuel the debt financing market's growth.

The increasing healthcare costs are anticipated to drive the growth of the debt financing market in the coming years. Healthcare costs refer to expenditures related to medical services, including treatments, medications, medical equipment, and supplies. As healthcare costs continue to rise, many patients are facing mounting medical debt, leading to a greater demand for debt financing as a means of managing these financial burdens. For example, in March 2022, the Centers for Medicare & Medicaid Services (CMS) in the US published its 2021-2030 National Health Expenditure (NHE) report, which projected that national health spending would grow at an average rate of 5.1% annually, reaching approximately $6.8 trillion by 2030. Additionally, Medicare and Medicaid spending are expected to grow at rates of 7.2% and 5.6%, respectively, during the same period. As a result, the rise in healthcare costs is fueling the demand for debt financing solutions.

Prominent companies operating in the debt financing domain are prioritizing the development of innovative technologies, such as eLoans solutions, to deliver dependable services to their clientele. eLoans, an electronic platform, offers eligible clients access to liquidity essential for managing commercial ventures, enabling them to oversee outstanding loans through repayment options. As an illustration, in July 2023, Citigroup Inc., a prominent US-based investment banking company, introduced its Trade and Working Capital eLoans solution for U.S. Citi Commercial Bank (CCB) clients. This offering, facilitated by treasury and trade solutions (TTS) on the CitiDirect platform, provides a scalable solution catering to cross-border trade flows. It empowers clients to secure liquidity, manage outstanding loans, and enhance self-service reporting by leveraging automated notifications. By minimizing manual touchpoints, improving self-service reporting capabilities, and supporting the working capital requirements of CCB clients, this digital platform aims to offer greater control and transparency over loan financing without incurring additional charges.

In August 2023, BlackRock Inc., a renowned provider of investment management services based in the United States, completed the acquisition of Kreos Capital Group, a leading growth and venture debt financing solution provider headquartered in the UK. The specific financial terms of the acquisition were not publicly disclosed. This strategic move by BlackRock is aimed at fortifying its global presence and capabilities as a prominent credit asset manager. Through this acquisition, BlackRock endeavors to expand its offerings, providing clients with a wider range of private market debt options and diversified investment solutions.

Major companies operating in the debt financing market report are JPMorgan Chase & Co, Citigroup Inc., Bank of America Corporation, Wells Fargo & Company, Morgan Stanley, HSBC Holdings PLC, BNP Paribas SA, Royal Bank of Canada, The Goldman Sachs Group Inc., ING Groep N.V., Mitsubishi UFJ Financial Group Inc., UBS Group AG, Deutsche Bank AG, The Bank of Nova Scotia, Barclays PLC, Societe Generale SA, Sumitomo Mitsui Financial Group Inc., Mizuho Financial Group Inc., BlackRock Inc., Credit Suisse AG, The Bank of New York Mellon Corporation, Nomura Holdings Inc., Blackstone Inc., ABN AMRO Bank N.V., DNB Bank ASA, Jefferies Financial Group Inc., Rothschild & Co SCA, Evercore Inc., Lazard Ltd., Houlihan Lokey Inc.

North America was the largest region in the debt financing market in 2024. The regions covered in the debt financing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the debt financing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The debt financing market includes revenues earned by entities by providing services such as non-bank cash flow lending, secured or unsecured loan, bond issuance, and traditional bank loans. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

Debt financing is a financial strategy used by businesses to raise capital by borrowing money from lenders or financial institutions. This borrowed capital is expected to be repaid at a later date, typically with interest. Debt financing serves various purposes, including securing additional working capital, acquiring assets, and facilitating the acquisition of other entities.

The main categories of sources in debt financing are private and public. Private debt financing involves obtaining funds from non-public sources. Various types of debt instruments can be utilized, including bank loans, bonds, debentures, bearer bonds, and others. The durations of these debt instruments can vary, encompassing both short-term and long-term financing options.

The debt financing market research report is one of a series of new reports that provides debt financing market statistics, including debt financing industry global market size, regional shares, competitors with a debt financing market share, detailed debt financing market segments, market trends and opportunities, and any further data you may need to thrive in the debt financing industry. This debt financing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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