Market Overview
US Factoring Services market is estimated to reach 301.8 billion US$ by 2030; growing at a CAGR of 8.4% from 2023 to 2030.
US Factoring Services market was valued at 158.3 billion US$ in 2022 and is projected to reach 301.8 billion US$ by 2030, at a CAGR of 8.4% during the forecast period. Factoring services are financial services that involve a company selling its accounts receivable (invoices) to a third party at a discount in exchange for immediate cash. Factoring is a way for companies to obtain cash quickly without taking on additional debt or waiting for their customers to pay their invoices. When a company uses factoring services, the third party (called the factor) becomes responsible for collecting payment from the company's customers. The factor charges a fee for this service, which is typically a percentage of the invoice amount. Factoring services can be an useful option for companies that have a lot of outstanding invoices and need cash quickly to cover their expenses or invest in their business. However, they can also be expensive, as the fees charged by factors can add up over time.
Market Dynamics
Growing adoption of electronic invoicing and payment systems and an increase in the use of Distributed Ledger Technology (DLT) by small and medium-sized enterprises and large corporations are the key driving factors of the market. However, competition from other forms of alternative financing, such as invoice financing and crowdfunding, and limited awareness and understanding of factoring services among potential customers might hamper the market growth. Increasing global trade and immediate need for working capital for expansion in operations would provide lucrative opportunities for the market in coming years.
Market Segmentation
The US Factoring Services market is mainly classified based on Category, Type, Financial Institution, and Industry Verticals.
Category is further segmented into Domestic and International.
By Type the market is divided into Recourse and Non-recourse.
By Financial Institution the market is further divided into Banks and Non-Banking Financial Institutions.
By Industry Verticals the US Factoring Services market is divided as Manufacturing, Transport & Logistics, Information & Technology, Healthcare, Construction, and Others.
Competitive Players/ Competitive landscape/ Key Players/Market Leaders
Key players operating in the US Factoring Services industry include HSBC Group, BNP Paribas, Barclays Plc, RTS Financial Services, Inc, TCI Business Capital, Riviera Finances of Texas, Inc, CIT Group Inc, Triumph Business Capital, Breakout Capital, LLC, and Charter Capital Holdings LP.
US Factoring Services Market Key Segments:
By Category
By Type
By Financial Institution
- Banks
- Non-Banking Financial Institutions
By Industry Verticals
- Manufacturing
- Transport & Logistics
- Information & Technology
- Healthcare
- Construction
- Others
Key US Factoring Services Industry Players
- HSBC Group
- BNP Paribas
- Barclays Plc
- RTS Financial Services, Inc
- TCI Business Capital
- Riviera Finances of Texas, Inc
- CIT Group Inc
- Triumph Business Capital
- Breakout Capital, LLC
- Charter Capital Holdings LP
What Report Provides
- Full in-depth analysis of the parent Industry
- Important changes in market and its dynamics
- Segmentation details of the market
- Former, on-going, and projected market analysis in terms of volume and value
- Assessment of niche industry developments
- Market share analysis
- Key strategies of major players
- Emerging segments and regional growth potential
