openPR Logo
Press release

US Factoring Services Market Set for to Reach US$ 598.1Bn by 2031 - Persistence Market Research

02-19-2025 09:57 AM CET | IT, New Media & Software

Press release from: Persistence Market Research

US Factoring Services Market

US Factoring Services Market

The U.S. factoring services market is poised for significant growth, with projections indicating an increase from USD 325.1 billion in 2024 to USD 598.1 billion by 2031, reflecting a Compound Annual Growth Rate (CAGR) of 9.1% during the forecast period. This expansion is driven by the rising adoption of fintech solutions, the integration of advanced technologies such as Artificial Intelligence (AI) and blockchain, and the increasing demand for alternative financing options among Small and Medium-sized Enterprises (SMEs).

Get a Sample PDF Brochure of the Report (Use Corporate Email ID for a Quick Response): https://www.persistencemarketresearch.com/samples/34770

Market Overview

Factoring services involve the sale of accounts receivable to a third party at a discount, providing businesses with immediate cash flow. This financial solution is particularly beneficial for SMEs that may face challenges in securing traditional bank financing. The U.S. market has witnessed a steady rise in the adoption of factoring services, attributed to the need for efficient working capital management and the evolution of financial technologies.

Key Market Drivers

Adoption of Fintech Solutions: The integration of fintech innovations has streamlined factoring processes, making them more accessible and efficient. Digital platforms enable real-time processing of invoices and instant funding approvals, enhancing the appeal of factoring services to a broader range of businesses.

Technological Advancements: The incorporation of AI and blockchain technologies has revolutionized the factoring industry. AI facilitates better risk assessment and decision-making, while blockchain ensures transparency and security in transactions, thereby boosting client confidence.

SME Financing Needs: SMEs often encounter difficulties in obtaining traditional financing due to stringent credit requirements. Factoring offers an alternative by converting receivables into immediate funds, aiding SMEs in maintaining liquidity and supporting business growth.

Market Segmentation

The U.S. factoring services market can be segmented based on factoring type, provider type, enterprise size, and end-user industry.

By Factoring Type:

Domestic Factoring: Involves transactions within the U.S.
International Factoring: Pertains to cross-border transactions.
Domestic factoring is anticipated to hold a significant market share, accounting for approximately 68% in 2024.

By Provider Type:

Banks: Traditional financial institutions offering factoring services.
Non-Banking Financial Companies (NBFCs): Specialized financial entities providing alternative financing solutions.

By Enterprise Size:

Small & Medium Enterprises (SMEs): Businesses with limited revenue and workforce.
Large Enterprises: Established companies with substantial market presence.
The SME segment is projected to dominate, securing about 58% market share in 2024, driven by their increasing reliance on factoring to manage cash flows.

By End-User Industry:

Construction: Companies involved in building and infrastructure development.
Manufacturing: Entities engaged in the production of goods.
Healthcare: Medical service providers and suppliers.
Logistics: Firms specializing in transportation and supply chain management.

Regional Insights

While the U.S. market is experiencing robust growth, it's essential to consider its position within the global context. Europe currently dominates the global factoring services market, holding approximately 65% of the market share. This indicates potential opportunities for U.S. providers to expand and capture a more significant portion of the international market.

Competitive Landscape

The U.S. factoring services market is characterized by the presence of both established banks and emerging NBFCs. Traditional banks leverage their extensive client base and trustworthiness, while NBFCs offer specialized services with greater flexibility. The competitive landscape is further intensified by fintech startups introducing innovative platforms that enhance user experience and operational efficiency.

Challenges and Opportunities

Challenges:

Regulatory Compliance: Navigating the complex regulatory environment requires continuous adaptation and compliance efforts.
Market Fragmentation: The presence of numerous players can lead to price competition, affecting profit margins.

Opportunities:

Technological Integration: Embracing AI and blockchain can differentiate service offerings and improve operational efficiency.
SME Market Penetration: Tailored solutions for SMEs can tap into a vast and underserved market segment.
Future Outlook

The U.S. factoring services market is on a trajectory of sustained growth, propelled by technological advancements and the increasing need for alternative financing solutions. Providers focusing on innovation, customer-centric services, and strategic partnerships are well-positioned to capitalize on emerging opportunities and navigate the evolving financial landscape.

Conclusion

In summary, the U.S. factoring services market is set to experience significant expansion between 2024 and 2031. The convergence of fintech innovations, technological advancements, and the financing needs of SMEs are central to this growth. Stakeholders and investors should closely monitor these trends to make informed decisions and leverage the opportunities within this dynamic market.

Explore the Latest Trending "Exclusive Article" @
https://medium.com/@aishwaryanagur6/key-players-dominating-the-aircraft-sequencing-system-market-2939fc4f987b
https://hackmd.io/@ifI0088USW246Rx9PbLRMQ/SkI_8s_Ykl
https://www.quora.com/profile/Aishwarya-Nagur-1/Trends-Shaping-the-Aircraft-Sequencing-System-Market-in-2025-The-aviation-industry-is-experiencing-a-transformative-pha
https://statisticalinsight.blogspot.com/2025/02/key-factors-driving-growth-in-aircraft.html
https://insightinnovators.wordpress.com/2025/02/11/the-growing-demand-for-ai-powered-aircraft-sequencing-systems-in-smart-airports/

Contact Us:
Persistence Market Research
G04 Golden Mile House, Clayponds Lane
Brentford, London, TW8 0GU UK
USA Phone: +1 646-878-6329
UK Phone: +44 203-837-5656
Email: sales@persistencemarketresearch.com
Web: https://www.persistencemarketresearch.com

About Persistence Market Research:
At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release US Factoring Services Market Set for to Reach US$ 598.1Bn by 2031 - Persistence Market Research here

News-ID: 3875986 • Views:

More Releases from Persistence Market Research

North America Wiring Devices Market Projected to Reach USD 26.46 Billion by 2031
North America Wiring Devices Market Projected to Reach USD 26.46 Billion by 2031
Overview of the North America Wiring Devices Market The North America wiring devices market is poised for steady growth over the forecast period, with its size estimated at US$ 18.96 billion in 2024, projected to reach US$ 26.46 billion by 2031, reflecting a CAGR of 4.9%. The market is witnessing substantial expansion due to increasing urbanization, a rising number of residential and commercial construction projects, and the adoption of energy-efficient and
Global Forged Automotive Components Market Poised for Steady Growth, Projected to Reach US$ 70.7 Billion by 2032
Global Forged Automotive Components Market Poised for Steady Growth, Projected t …
The global forged automotive components market is on a robust growth trajectory, currently valued at approximately US$ 50.3 billion in 2025 and forecasted to expand to US$ 70.7 billion by the end of 2032. This growth represents a compound annual growth rate (CAGR) of 5.0% over the coming decade, driven by increasing automotive production, technological advancements, and evolving consumer preferences toward durable, high-performance vehicle parts. Forged automotive components are critical to
Global Electric Cargo Bike Market Set to Accelerate at 11.9% CAGR, Reaching US$ 2.14 Billion by 2032, Reports Persistence Market Research
Global Electric Cargo Bike Market Set to Accelerate at 11.9% CAGR, Reaching US$ …
The global electric cargo bike market is set to experience substantial growth over the coming decade, with Persistence Market Research (PMR) forecasting a compound annual growth rate (CAGR) of 11.9% from 2023 through 2032. Valued at approximately US$ 800 million in 2021, the market is expected to surge to a projected valuation of US$ 2.14 billion by the end of 2032. Notably, electric cargo bikes accounted for 66.2% of the
Bicycle Bearings Market Set for Steady Growth with 6.5% CAGR Through 2032, Driven by Urbanization and Demographic Trends
Bicycle Bearings Market Set for Steady Growth with 6.5% CAGR Through 2032, Drive …
The global bicycle bearings market is poised for significant expansion over the forecast period of 2025 to 2032, according to the latest report released by Persistence Market Research. Valued at approximately US$ 5.99 billion in 2024, the market is projected to reach US$ 6.35 billion by 2025 and further escalate to nearly US$ 9.86 billion by 2032. This growth trajectory reflects a compound annual growth rate (CAGR) of 6.5%, underscoring

All 5 Releases


More Releases for SME

Global SMB/SME NAS Market Size by Application, Type, and Geography: Forecast to …
USA, New Jersey- According to Market Research Intellect, the global SMB/SME NAS market in the Internet, Communication and Technology category is projected to witness significant growth from 2025 to 2032. Market dynamics, technological advancements, and evolving consumer demand are expected to drive expansion during this period. The Small and Medium Business (SMB) / Small and Medium Enterprise (SME) Network Attached Storage (NAS) market is experiencing significant growth as businesses continue to
SME Insurance - Market Size | Valuates Reports
SME Insurance - Market Size | Valuates Reports The global market for SME Insurance was estimated to be worth US$ 18010 million in 2023 and is forecast to a readjusted size of US$ 24100 million by 2030 with a CAGR of 4.2% during the forecast period 2024-2030 View Sample Report https://reports.valuates.com/request/sample/QYRE-Auto-3D7510/China_SME_Insurance_Market_Report_Forecast_2021_2027 Report Scope This report aims to provide a comprehensive presentation of the global market for SME Insurance, focusing on the total sales revenue, key
UK SME Insurance Market Report- Competitor Dynamics | Insurers can challenge the …
The research study contains an in detail descriptive overview and analysis of the UK SME Insurance Market, a summary of the UK SME Insurance Market shares constituted by each component, the annual growth of each sector, and the revenue potential of the section. In addition, UK SME Insurance Market production and consumption data are used to determine the geographical features. Get FREE PDF Sample of the Report @ https://www.reportsnreports.com/contacts/requestsample.aspx?name=4430784 AXA and
INDIA: Big March for SME
In keeping with recent and ongoing changes in the business landscape, business is focusing on mobility rather than stability, and the service business has evolved accordingly. Globalization is the buzzword as geographic boundaries cease to exist. Business is competing for opportunities in an international arena. Because the world is connected in a single unit, any crisis in one part of the world has repercussions in other parts, too. Small and medium-sized
IndiaMART.com Pushes for Cohesive SME Ecosystem through SME Learning Series
Partners with Smallenterpriseindia.com for the Series Series aims to bring clear understanding of Finance, HR, IT, Communication, Marketing & other business verticals to SMEs Roadshows in Delhi, Ghaziabad, Gurgaon, Bangalore & Vadodara receive huge response New Delhi, 28th May, 2011: Small and Medium Enterprises (SMEs) have been playing a vital role in growth and development of Indian economy. They are credited with generating million of job opportunities every year along with contributing a
IndiaMART.com Plans Massive SME Awareness Campaign
To be launched in 2-3 weeks, campaign's theme centers on boosting awareness amongst SMEs on the need to go online - Educate buyers & suppliers on how they can leverage Internet for 24X7 global presence, cost-effective marketing & B2B matchmaking - Highlight catalyzing role of B2B e-marketplaces like IndiaMART.com in growth of SMEs - Nation-wide drive to be launched across newspapers, magazines, online, radio, electronic & outdoor media New Delhi,