Global Reverse Factoring Market Size, Trends, By Institution (Banks, Non-Banking Financial Institutions), By End-use (Transport & Logistics, Manufacturing, Retail, Food & Beverages, Healthcare, and Others), and By Region (North America, Latin America, Eur
Description
Global Reverse Factoring Market Size, Trends, By Institution (Banks, Non-Banking Financial Institutions), By End-use (Transport & Logistics, Manufacturing, Retail, Food & Beverages, Healthcare, and Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa): Global Opportunity Analysis and Industry Forecast, 2023-2030.
Global Reverse Factoring Market
The Global Reverse Factoring Market was valued at US$ 540.22 Bn in 2022, estimated to reach US$ 1,210.87 Bn by 2030, with a CAGR of 10.57% from 2023-2030.
Reverse factoring, also known as supply chain finance, is a financing technique that has become increasingly popular in recent years. It is a financial arrangement where a supplier sells its outstanding invoices to a financial institution or a third-party financing company, which then pays the supplier an amount less than the face value of the invoices. The financial institution then collects the payment from the buyer of the goods or services on the due date of the invoice.
This way, the supplier receives early payment for its invoices, and the buyer can take advantage of extended payment terms. Reverse factoring has become a crucial tool for businesses looking to optimize their working capital, reduce risk, and improve their cash flow. In this way, reverse factoring has become an attractive solution for suppliers looking to access affordable financing options and for buyers looking to optimize their working capital.
Market Drivers
The global market for reverse factoring is primarily driven by the increasing demand for working capital management and the need for easy access to credit. Reverse factoring provides a reliable and efficient way for suppliers to finance their receivables, thus improving their cash flow and working capital.
Additionally, the rising trend of globalization and the growing number of small and medium-sized enterprises (SMEs) are also driving the growth of the market. Reverse factoring helps SMEs to improve their financial position by enabling them to obtain funding at lower costs compared to traditional financing options.
Moreover, the increasing adoption of digital technology and automation in financial services is expected to drive the growth of the market further. The digitalization of reverse factoring processes can help reduce processing times and improve efficiency, making it a preferred choice for businesses seeking financing solutions.
Market Restraints
The global reverse factoring market may be hindered by the lack of awareness and understanding of the concept among SMEs. Many SMEs are unaware of the benefits of reverse factoring, which leads to limited demand for the service. Additionally, there is a reluctance among SMEs to share their invoices with a third party, which is an essential part of the reverse factoring process.
Market Segmentation
The scope of the global reverse factoring market covers segmentation based on institution, end-use, and region.
Based on the institution, the reverse factoring market is segmented into banks and non-banking financial institutions. Based on the end-use, the market is segmented into transport & logistics, manufacturing, retail, food & beverages, healthcare, and others.
Regional Analysis
The global reverse factoring market is segmented into 5 main regions, namely, North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.
North America, Europe, and Asia-Pacific are the major regions contributing to the growth of the market. Europe is also a leading region in the reverse factoring market due to the increasing demand for working capital optimization and the need for cost reduction in supply chain management.
The Asia-Pacific region is expected to witness fast growth in the reverse factoring market due to the growing demand for supply chain financing solutions in emerging economies such as China, India, and Southeast Asia. The increasing adoption of e-invoicing and digital payment solutions, along with government initiatives to promote the growth of small and medium-sized enterprises, is also expected to drive the growth of the market in this region.
Key Players
JPMorgan Chase & Co, Mitsubishi UFJ Financial Group, Société Générale SA, Deutsche Bank AG, HSBC Holdings PLC, PrimeRevenue Inc, Accion International, Drip Capital Inc, Credit Suisse Group AG, Trade Finance Global, etc.
Market Taxonomy
By Institution
Global Reverse Factoring Market
The Global Reverse Factoring Market was valued at US$ 540.22 Bn in 2022, estimated to reach US$ 1,210.87 Bn by 2030, with a CAGR of 10.57% from 2023-2030.
Reverse factoring, also known as supply chain finance, is a financing technique that has become increasingly popular in recent years. It is a financial arrangement where a supplier sells its outstanding invoices to a financial institution or a third-party financing company, which then pays the supplier an amount less than the face value of the invoices. The financial institution then collects the payment from the buyer of the goods or services on the due date of the invoice.
This way, the supplier receives early payment for its invoices, and the buyer can take advantage of extended payment terms. Reverse factoring has become a crucial tool for businesses looking to optimize their working capital, reduce risk, and improve their cash flow. In this way, reverse factoring has become an attractive solution for suppliers looking to access affordable financing options and for buyers looking to optimize their working capital.
Market Drivers
The global market for reverse factoring is primarily driven by the increasing demand for working capital management and the need for easy access to credit. Reverse factoring provides a reliable and efficient way for suppliers to finance their receivables, thus improving their cash flow and working capital.
Additionally, the rising trend of globalization and the growing number of small and medium-sized enterprises (SMEs) are also driving the growth of the market. Reverse factoring helps SMEs to improve their financial position by enabling them to obtain funding at lower costs compared to traditional financing options.
Moreover, the increasing adoption of digital technology and automation in financial services is expected to drive the growth of the market further. The digitalization of reverse factoring processes can help reduce processing times and improve efficiency, making it a preferred choice for businesses seeking financing solutions.
Market Restraints
The global reverse factoring market may be hindered by the lack of awareness and understanding of the concept among SMEs. Many SMEs are unaware of the benefits of reverse factoring, which leads to limited demand for the service. Additionally, there is a reluctance among SMEs to share their invoices with a third party, which is an essential part of the reverse factoring process.
Market Segmentation
The scope of the global reverse factoring market covers segmentation based on institution, end-use, and region.
Based on the institution, the reverse factoring market is segmented into banks and non-banking financial institutions. Based on the end-use, the market is segmented into transport & logistics, manufacturing, retail, food & beverages, healthcare, and others.
Regional Analysis
The global reverse factoring market is segmented into 5 main regions, namely, North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.
North America, Europe, and Asia-Pacific are the major regions contributing to the growth of the market. Europe is also a leading region in the reverse factoring market due to the increasing demand for working capital optimization and the need for cost reduction in supply chain management.
The Asia-Pacific region is expected to witness fast growth in the reverse factoring market due to the growing demand for supply chain financing solutions in emerging economies such as China, India, and Southeast Asia. The increasing adoption of e-invoicing and digital payment solutions, along with government initiatives to promote the growth of small and medium-sized enterprises, is also expected to drive the growth of the market in this region.
Key Players
JPMorgan Chase & Co, Mitsubishi UFJ Financial Group, Société Générale SA, Deutsche Bank AG, HSBC Holdings PLC, PrimeRevenue Inc, Accion International, Drip Capital Inc, Credit Suisse Group AG, Trade Finance Global, etc.
Market Taxonomy
By Institution
- Banks
- Non-Banking Financial Institutions
- Transport & Logistics
- Manufacturing
- Retail
- Food & Beverages
- Healthcare
- Others
- North America
- U.S.
- Canada
- Mexico
- Latin America
- Brazil
- Argentina
- Colombia
- Peru
- Chile
- Venezuela
- Rest of Latin America
- Europe
- Germany
- France
- UK
- Russia
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- New Zealand
- Singapore
- Malaysia
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of Middle East & Africa
- What are the key opportunities in the Global Reverse Factoring Market?
- What will be the growth rate from 2023 to 2030?
- Which segment/region will have the highest growth?
- What are the factors that will impact/drive the market?
- What is the competitive landscape in the industry?
- What is the role of key players in the value chain?
Table of Contents
222 Pages
- 1 Introduction
- 1.1 Objective of the Study
- 1.2 Market Definition
- 1.3 Market Scope
- 2 Research Methodology
- 2.1 Data Mining
- 2.2 Validation
- 2.3 Primary Interviews
- 2.4 List of Data Sources
- 3 Executive Summary
- 4 Global Reverse Factoring Market Outlook
- 4.1 Overview
- 4.2 Market Dynamics
- 4.2.1 Drivers
- 4.2.2 Restraints
- 4.2.3 Opportunities
- 4.2.4 Cumulative Impact due to Recent Energy Crisis
- 4.2.5 Cumulative Impact due to Nearing Economic Downturn
- 4.2.6 Post Covid-19 World Supply & Demand Conditions
- 4.2.7 Cumulative Impact of Russia-Ukraine Conflict
- 4.3 Porters Five Force Model
- 4.4 Value Chain Analysis
- 5 Global Reverse Factoring Market, By Institution
- 5.1 Y-o-Y Growth Comparison, By Institution
- 5.2 Global Reverse Factoring Market Share Analysis, By Institution
- 5.3 Global Reverse Factoring Market Size and Forecast, By Institution
- 5.3.1 Banks
- 5.3.2 Non-Banking Financial Institutions
- 6 Global Reverse Factoring Market, By End-use
- 6.1 Y-o-Y Growth Comparison, By End-use
- 6.2 Global Reverse Factoring Market Share Analysis, By End-use
- 6.3 Global Reverse Factoring Market Size and Forecast, By End-use
- 6.3.1 Transport & Logistics
- 6.3.2 Manufacturing
- 6.3.3 Retail
- 6.3.4 Food & Beverages
- 6.3.5 Healthcare
- 6.3.6 Others
- 7 Global Reverse Factoring Market, By Region
- 7.1 Global Reverse Factoring Market Share Analysis, By Region
- 7.2 Global Reverse Factoring Market Size and Forecast, By Region
- 7.3 Global Reverse Factoring Market Trends and Forecast, By Region
- 8 North America Reverse Factoring Market Analysis and Forecast (2023-2030)
- 8.1 Introduction
- 8.2 North America Reverse Factoring Market Share Analysis, By Institution
- 8.3 North America Reverse Factoring Market Size and Forecast, By End-use
- 8.4 North America Reverse Factoring Market Size and Forecast, By Country
- 8.4.1 U.S.
- 8.4.1.1 Market Size and Forecast, By Institution
- 8.4.1.2 Market Size and Forecast, By End-use
- 8.4.2 Canada
- 8.4.2.1 Market Size and Forecast, By Institution
- 8.4.2.2 Market Size and Forecast, By End-use
- 8.4.3 Mexico
- 8.4.3.1 Market Size and Forecast, By Institution
- 8.4.3.2 Market Size and Forecast, By End-use
- 9 Europe Reverse Factoring Market Analysis and Forecast (2023-2030)
- 9.1 Introduction
- 9.2 Europe Reverse Factoring Market Share Analysis, By Institution
- 9.3 Europe Reverse Factoring Market Size and Forecast, By End-use
- 9.4 Europe Reverse Factoring Market Size and Forecast, By Country
- 9.4.1 Germany
- 9.4.1.1 Market Size and Forecast, By Institution
- 9.4.1.2 Market Size and Forecast, By End-use
- 9.4.2 France
- 9.4.2.1 Market Size and Forecast, By Institution
- 9.4.2.2 Market Size and Forecast, By End-use
- 9.4.3 UK
- 9.4.3.1 Market Size and Forecast, By Institution
- 9.4.3.2 Market Size and Forecast, By End-use
- 9.4.4 Russia
- 9.4.4.1 Market Size and Forecast, By Institution
- 9.4.4.2 Market Size and Forecast, By End-use
- 9.4.5 Italy
- 9.4.5.1 Market Size and Forecast, By Institution
- 9.4.5.2 Market Size and Forecast, By End-use
- 9.4.6 Spain
- 9.4.6.1 Market Size and Forecast, By Institution
- 9.4.6.2 Market Size and Forecast, By End-use
- 9.4.7 Rest of Europe
- 9.4.7.1 Market Size and Forecast, By Institution
- 9.4.7.2 Market Size and Forecast, By End-use
- 10 Asia Pacific Reverse Factoring Market Analysis and Forecast (2023-2030)
- 10.1 Introduction
- 10.2 Asia Pacific Reverse Factoring Market Share Analysis, By Institution
- 10.3 Asia Pacific Reverse Factoring Market Size and Forecast, By End-use
- 10.4 Asia Pacific Reverse Factoring Market Size and Forecast, By Country
- 10.4.1 China
- 10.4.1.1 Market Size and Forecast, By Institution
- 10.4.1.2 Market Size and Forecast, By End-use
- 10.4.2 Japan
- 10.4.2.1 Market Size and Forecast, By Institution
- 10.4.2.2 Market Size and Forecast, By End-use
- 10.4.3 India
- 10.4.3.1 Market Size and Forecast, By Institution
- 10.4.3.2 Market Size and Forecast, By End-use
- 10.4.4 South Korea
- 10.4.4.1 Market Size and Forecast, By Institution
- 10.4.4.2 Market Size and Forecast, By End-use
- 10.4.5 Australia
- 10.4.5.1 Market Size and Forecast, By Institution
- 10.4.5.2 Market Size and Forecast, By End-use
- 10.4.6 New Zealand
- 10.4.6.1 Market Size and Forecast, By Institution
- 10.4.6.2 Market Size and Forecast, By End-use
- 10.4.7 Singapore
- 10.4.7.1 Market Size and Forecast, By Institution
- 10.4.7.2 Market Size and Forecast, By End-use
- 10.4.8 Malaysia
- 10.4.8.1 Market Size and Forecast, By Institution
- 10.4.8.2 Market Size and Forecast, By End-use
- 10.4.9 Rest of Asia
- 10.4.9.1 Market Size and Forecast, By Institution
- 10.4.9.2 Market Size and Forecast, By End-use
- 11 Latin America Reverse Factoring Market Analysis and Forecast (2023-2030)
- 11.1 Introduction
- 11.2 Latin America Reverse Factoring Market Share Analysis, By Institution
- 11.3 Latin America Reverse Factoring Market Size and Forecast, By End-use
- 11.4 Latin America Reverse Factoring Market Size and Forecast, By Country
- 11.4.1 Brazil
- 11.4.1.1 Market Size and Forecast, By Institution
- 11.4.1.2 Market Size and Forecast, By End-use
- 11.4.2 Argentina
- 11.4.2.1 Market Size and Forecast, By Institution
- 11.4.2.2 Market Size and Forecast, By End-use
- 11.4.3 Colombia
- 11.4.3.1 Market Size and Forecast, By Institution
- 11.4.3.2 Market Size and Forecast, By End-use
- 11.4.4 Peru
- 11.4.4.1 Market Size and Forecast, By Institution
- 11.4.4.2 Market Size and Forecast, By End-use
- 11.4.5 Chile
- 11.4.5.1 Market Size and Forecast, By Institution
- 11.4.5.2 Market Size and Forecast, By End-use
- 11.4.6 Venezuela
- 11.4.6.1 Market Size and Forecast, By Institution
- 11.4.6.2 Market Size and Forecast, By End-use
- 11.4.7 Rest of Latin America
- 11.4.7.1 Market Size and Forecast, By Institution
- 11.4.7.2 Market Size and Forecast, By End-use
- 12 Middle East Reverse Factoring Market Analysis and Forecast (2023-2030)
- 12.1 Introduction
- 12.2 Middle East Reverse Factoring Market Share Analysis, By Institution
- 12.3 Middle East Reverse Factoring Market Size and Forecast, By End-use
- 12.4 Middle East Reverse Factoring Market Size and Forecast, By Country
- 12.4.1 Saudi Arabia
- 12.4.1.1 Market Size and Forecast, By Institution
- 12.4.1.2 Market Size and Forecast, By End-use
- 12.4.2 UAE
- 12.4.2.1 Market Size and Forecast, By Institution
- 12.4.2.2 Market Size and Forecast, By End-use
- 12.4.3 Egypt
- 12.4.3.1 Market Size and Forecast, By Institution
- 12.4.3.2 Market Size and Forecast, By End-use
- 12.4.4 Kuwait
- 12.4.4.1 Market Size and Forecast, By Institution
- 12.4.4.2 Market Size and Forecast, By End-use
- 12.4.5 South Africa
- 12.4.5.1 Market Size and Forecast, By Institution
- 12.4.5.2 Market Size and Forecast, By End-use
- 12.4.6 Rest of Middle East & Africa
- 12.4.6.1 Market Size and Forecast, By Institution
- 12.4.6.2 Market Size and Forecast, By End-use
- 13 Competitive Analysis
- 13.1 Competition Dashboard
- 13.2 Market share Analysis of Top Vendors
- 13.3 Key Development Strategies
- 14 Company Profiles
- 14.1 JPMorgan Chase & Co
- 14.1.2 Offerings
- 14.1.3 Key Financials
- 14.1.4 Business Segment & Geographic Overview
- 14.1.5 Key Market Developments
- 14.1.6 Key Strategies
- 14.2 Mitsubishi UFJ Financial Group
- 14.2.1 Overview
- 14.2.2 Offerings
- 14.2.3 Key Financials
- 14.2.4 Business Segment & Geographic Overview
- 14.2.5 Key Market Developments
- 14.2.6 Key Strategies
- 14.3 Société Générale SA
- 14.3.1 Overview
- 14.3.2 Offerings
- 14.3.3 Key Financials
- 14.3.4 Business Segment & Geographic Overview
- 14.3.5 Key Market Developments
- 14.3.6 Key Strategies
- 14.4 Deutsche Bank AG
- 14.4.1 Overview
- 14.4.1 Overview
- 14.4.2 Offerings
- 14.4.3 Key Financials
- 14.4.4 Business Segment & Geographic Overview
- 14.4.5 Key Market Developments
- 14.4.6 Key Strategies
- 14.5 HSBC Holdings PLC
- 14.5.1 Overview
- 14.5.2 Offerings
- 14.5.3 Key Financials
- 14.5.4 Business Segment & Geographic Overview
- 14.5.5 Key Market Developments
- 14.5.6 Key Strategies
- 14.6 PrimeRevenue Inc
- 14.6.1 Overview
- 14.6.2 Offerings
- 14.6.3 Key Financials
- 14.6.4 Business Segment & Geographic Overview
- 14.6.5 Key Market Developments
- 14.6.6 Key Strategies
- 14.7 Accion International
- 14.7.1 Overview
- 14.7.2 Offerings
- 14.7.3 Key Financials
- 14.7.4 Business Segment & Geographic Overview
- 14.7.5 Key Market Developments
- 14.7.6 Key Strategies
- 14.8 Drip Capital Inc
- 14.8.1 Overview
- 14.8.2 Offerings
- 14.8.3 Key Financials
- 14.8.4 Business Segment & Geographic Overview
- 14.8.5 Key Market Developments
- 14.8.6 Key Strategies
- 14.9 Credit Suisse Group AG
- 14.9.1 Overview
- 14.9.2 Offerings
- 14.9.3 Key Financials
- 14.9.4 Business Segment & Geographic Overview
- 14.9.5 Key Market Developments
- 14.9.6 Key Strategies
- 14.10 Trade Finance Global
- 14.10.1 Overview
- 14.10.2 Offerings
- 14.10.3 Key Financials
- 14.10.4 Business Segment & Geographic Overview
- 14.10.5 Key Market Developments
- 14.10.6 Key Strategies
Pricing
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