About Factoring
Factoring is an alternative source of financing for MSMEs. The market is expected to mark significant growth over forecasted period owing to increasing investments in Blockchain technology by governments and technological advancement. Factoring is applicable for bills counting, receivables financing and others. There has been significant rise in Asia factoring market with figure stood up to 13% in 2018, the future for factoring looks promising. This result in rising integration of Blockchain in BFSI platforms and escalating need for functional consumer and commercial credit information may trigger demand and help in industry expansion.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
High Growth Market | Asia Pacific |
Unit | Value (USD Million) |
CAGR | 11.4% |
The competitive landscape includes the market ranking of the major players as well as new service or product launches, partnerships, business expansions, and acquisitions made by the companies profiled in the previous five years. Extensive company profiles for the major market players, including a company overview, company insights, product benchmarking, and SWOT analysis. Analyst at AMA Research estimates that United States and United Kingdom Players will contribute the maximum growth to Global Factoring market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
BNP Paribas (France), Deutsche Factoring Bank (Germany), Eurobank (Greece), HSBC Group (United Kingdom), Mizuho Financial Group (Japan), 1st PMF Bancorp (United Kingdom), Aldemore Invoice Finance (United Kingdom), American Receivable (United Kingdom), Bibby Financial Services (United Kingdom) and Capital Plus (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Charter Capital (India), RBS Invoice Finance (United Kingdom), Riviera Finance (United States) and Universal Funding (United States).
Segmentation Overview
AMA Research has segmented the market of Global Factoring market by Type (Domestic and International), Application (Micro, Large Enterprises (BFSI, Financial institutions) and Small and Medium Enterprises (SMEs)) and Region.
On the basis of geography, the market of Factoring has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). North America region held largest market share in the year 2023. Europe, on the other hand, stood as the second largest market due to the presence of key companies in the region and high technological advancement.
Influencing Trend:
Introduction of blockchain in factoring market. and Growing popularity in emerging countries
Market Growth Drivers:
Increase in Demand of factoring due to Alternative Source of Financing Boost the Market. and Rapid Demand Due to Provision of Capital Loans that Fuelled up the Factoring Market.
Challenges:
Limitation on the Speed Level of Factoring are Anticipated to Challenge the Market.
Restraints:
Fraud Risk Associated with Factoring. and Restrict the Scope of other Borrowing Such as Book Debts.
Opportunities:
Increasing Awareness among the Customers that leads to Grow the Factoring Market. and Technological Advancements Such as Payments through Invoices Expected to Boost the Market
Market Leaders and their expansionary development strategies
On 14th March 2022, Bank of Baroda (BoB) announced that the merger of its wholly-owned subsidiary Baroda Asset Management India Limited (Baroda AMC) with BNP Paribas Asset Management India Private Limited (BNPP AMC) was completed and that the new entity had begun operations.
On 9th March 2021, Token, a leading Open Banking payments platform, and BNP Paribas announced the launch of the first online payments service that combines the power of the European Payments Council's SEPA Instant and PSD2 APIs. BNP Paribas Instanea is a Token-based turnkey instant payment initiation solution. It provides account-to-account (A2A) payment capabilities to merchants across Europe, improving transaction speed and security.
According to the Factoring Regulation Act, a factoring business is one in which one entity (referred to as the factor) acquires the receivables of another entity (referred to as the assignor) for a fee. Receivables are the total amounts owed or yet to be paid to the assignor by customers (referred to as debtors) for the use of any goods, services, or facilities. A bank, a registered non-banking financial company, or any company registered under the Companies Act can be a factor.
Key Target Audience
Factoring Manufacturers, Factoring Traders, End-Use Market Participants of Different Segments of Factoring, Government and Research Organizations, R&D Institutions and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.