Factoring Market Report 2026

The factoring market size has grown strongly in recent years. It will grow from $5.69 trillion in 2025 to $6.18 trillion in 2026 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to growth in small and medium enterprise financing needs, rising trade and invoice volumes, limited access to traditional bank credit, expansion of domestic and international trade, increasing acceptance of receivables financing.

The factoring market size is expected to see strong growth in the next few years. It will grow to $8.57 trillion in 2030 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to increasing adoption of ai-based credit evaluation, rising demand for real-time liquidity solutions, expansion of international trade financing, growing use of digital onboarding platforms, increasing regulatory clarity for alternative finance. Major trends in the forecast period include increasing adoption of digital factoring platforms, rising demand for working capital optimization solutions, growing use of non-recourse factoring models, expansion of cross-border factoring services, enhanced focus on credit risk assessment.

The increasing cross-border trade activities are anticipated to drive the growth of the factoring market in the coming years. Cross-border trade involves the processes related to billing, collection, and customer support that the Licensee and any affiliate or related entity of the Licensee undertake in connection with the import, export, or transit of capacity or power under the terms of this license. Factoring offers cross-border trade companies immediate cash flow that can be utilized to support expansion and operations by selling their receivables to another firm, enabling them to enhance their borrowing potential and access the resources necessary for sustained global competitiveness. For example, in October 2025, according to InterTradeIreland, an Ireland-based government office and cross-border economic development agency, cross-border trade is expanding at an unprecedented rate, reaching a record €15/£12 billion ($17.6 USD/$16.1 USD billion). Consequently, the rise in cross-border trade activities is fueling the growth of the factoring market.

Major companies operating in the factoring market are concentrating on creating innovative solutions such as spot-factoring services to improve liquidity, speed up invoice processing, and address the growing need for flexible, on-demand financing options among businesses. Spot-factoring services enable businesses to sell individual invoices, rather than their entire accounts receivable portfolio, to a factoring company on a one-time or ad-hoc basis. For example, in November 2025, CapFlow Funding Group LLC, a US-based financial solutions provider, introduced FactorOne, a spot-factoring service aimed at providing businesses with immediate access to cash for single invoices. FactorOne offers streamlined onboarding, transparent pricing, and no long-term commitments, making it suitable for industries such as logistics, manufacturing, professional services, and seasonal operations where cash flow may be unpredictable. This service allows businesses to cover payroll, handle unexpected expenses, or capitalize on growth opportunities quickly, providing flexibility beyond conventional factoring arrangements.

In June 2023, Bibby Financial Services Limited, a UK-based financial services company, acquired Aldermore’s Working Capital Finance division for an undisclosed amount. Through this acquisition, Bibby Financial Services seeks to broaden its working capital finance offerings, strengthen its lending capabilities, and cater to a wider customer base across the UK. Aldermore Bank Plc is a UK-based financial services entity focused on delivering customized working capital financing solutions to businesses.

Major companies operating in the factoring market are Société Générale S.A., BNP Paribas, China Construction Bank Corporation, Deutsche Bank AG, HSBC Group, Barclays Bank PLC, JPMorgan Chase, Mizuho Financial Group Inc., Wells Fargo & Company, Eurobank, Sheng Ye Capital, Velotrade, India Factoring and Finance Solutions Pvt. Ltd., Business Capital Financial Group, Work Capital, Bibby Factor France, Eurofactor Credit, UniCredit Bank, VTB Factoring LLC, TAM Finans, OTP Factoring SRL, REV Capital, Rosenthal & Rosenthal Inc., American Receivable, Factor Funding Co, Banco do Brasil S.A., Caixa Econômica Federal, Santander Brasil, Supervielle Factoring, Dar Al Tawreeq, Reem Finance PJSC, iFund Factoring Forfaiting Services, ING Factoring, Afreximbank, FirstRand Bank, Stanbic Bank, NMB Bank.

Asia-Pacific was the largest region in the factoring market in 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the factoring market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the factoring market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The factoring market includes revenues earned by entities by sales of factoring services such as recourse reserved factoring, irrevocable recourse factoring, collection method, factoring on payment terms, invoice discount method, and implicit factoring. 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.

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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