Invoice Factoring Market Report 2026

The invoice factoring market size has grown rapidly in recent years. It will grow from $3.46 trillion in 2025 to $3.86 trillion in 2026 at a compound annual growth rate (CAGR) of 11.7%. The growth in the historic period can be attributed to increasing payment cycle durations, limited access to traditional bank credit for SMEs, growth in domestic and cross-border trade, rising need for liquidity management, expansion of non-bank financing options.

The invoice factoring market size is expected to see rapid growth in the next few years. It will grow to $5.95 trillion in 2030 at a compound annual growth rate (CAGR) of 11.4%. The growth in the forecast period can be attributed to growing adoption of fintech-enabled factoring solutions, increasing demand for real-time cash flow visibility, expansion of international factoring services, rising integration of AI-driven credit analytics, growing acceptance of alternative financing models. Major trends in the forecast period include increasing adoption of digital invoice factoring platforms, rising demand for flexible working capital solutions, growing use of automated credit risk assessment, expansion of sme-focused factoring services, enhanced focus on faster invoice turnaround.

The increasing demand for fintech solutions is expected to drive the growth of invoice factoring. Fintech solutions involve the application of innovative technologies to improve and streamline traditional financial services and processes. The rising adoption of fintech solutions is fueled by factors such as evolving customer expectations, digital connectivity, dissatisfaction with conventional financial services, and the unbundling of financial services. Invoice factoring facilitates the expansion and innovation of fintech solutions by enhancing cash flow management, integrating advanced technology, diversifying financial services, improving accessibility, streamlining processes, and promoting market growth. For instance, in November 2023, according to the International Financial Trade Administration, a US-based government agency, the FinTech sector in the UK included over 1,600 firms, a number projected to double by 2030. Therefore, the growing popularity of fintech solutions is driving the expansion of the invoice factoring market.

Leading companies in the invoice factoring market are focused on developing advanced solutions, such as web-based invoice financing, to provide more flexible, user-friendly platforms for businesses to manage receivables, improve cash flow, and reduce administrative overhead. A web-based invoice financing solution is a digital platform that allows businesses to secure financing by leveraging outstanding invoices, providing immediate access to funds based on amounts due from customers. For instance, in July 2024, the State Bank of India (SBI) launched a Web-Based Invoice Financing Solution. This solution streamlines the borrowing process, making it accessible and efficient for businesses seeking to leverage accounts receivable for immediate cash flow needs. SBI aims to address liquidity challenges faced by small businesses, which often struggle to access formal credit. This initiative is particularly relevant given that many of India’s microbusinesses and small and midsize enterprises (SMEs) require greater access to financial resources.

In August 2025, Banca Ifis S.p.A., an Italy-based financial services company focused on factoring and specialty finance for SMEs and corporates, acquired illimity Bank S.p.A. for an undisclosed amount. Through this acquisition, Banca Ifis aimed to expand its market presence and diversify its service portfolio beyond core factoring activities by strengthening digital banking, lending, and credit management capabilities for small and medium enterprises in Italy. illimity Bank S.p.A. is an Italy-based banking group specializing in digital banking, corporate lending, and alternative credit solutions, offering technology-enabled financial services to SMEs and institutional clients.

Major companies operating in the invoice factoring market are Industrial and Commercial Bank of China Limited (ICBC), Riviera Finance, FundThrough, RTS Financial, Triumph Business Capital, eCapital Corporation, Scale Funding, Universal Funding Corporation, Kapitus, 1st Commercial Credit, Wayflyer, Drip Capital, Factorglobe, OTR Capital, Fundbox Inc., Paragon Financial Group Inc., Accord Financial Corporation, Eagle Business Credit LLC, TBS Factoring Service LLC, Sonovate Limited.

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

The invoice factoring market includes revenues earned by entities by immediate cash advances, debt collection, industry-specific solutions. 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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