The U.S. Factoring Services Market size is expected to
reach USD 287.61 billion by 2030 and expand at a CAGR of 8.1% from 2022 to
2030, according to a recent report by Grand View Research, Inc. The market
growth can be attributed to the increased awareness and understanding of supply
chain financing benefits, and the rising implementation of digital platforms in
trade financing. The COVID-19 outbreak significantly affected the U.S. economy
leading to supply chain and market disruptions, and inducing a severe financial
impact on enterprises and financial markets. As a result, several trucking
companies, such as eCapital, Thunder Funding, RTS Financial, and Apex Capital
Corp, are having to adapt to the shifts in the supply chain with the help of
technological advancements. This will improve the overall supply chain process
by reducing operational costs and enhancing the security across the system.
The growing focus on the improvement of cash flow,
reduction in day’s sales outstanding, and reduced accounting cycle time are the
major factors driving the growth of the regional market. Manufacturing
companies are looking for new opportunities to improve production processes,
support employees in simplifying work while maintaining accuracy and create new
and innovative products. Manufacturers are embracing new trends, especially in
technology, to remain competitive in the market. With the growing propensity of
businesses toward digitalization and automating the process, the demand for
accounts receivable automation has seen a surge. The adoption of such types of
technologies will further boost the factoring market in the U.S. during the
forecast period.
The growing demand for precise management of
accounting procedures and timely processing of payment processes from customers
is contributing to the growth of the market. These capabilities streamline and
improve performance by utilizing e-invoicing, scanning, and workflow, online
tracking and reporting capabilities, mobile solutions, electronic invoice
dashboards, and analytics for all invoices. It allows organizations to
successfully drive the transformation of their accounts receivable departments
to overcome the challenges of manual and paper-based processes. This will
supplement the growth of the regional market during the forecast period.
Related Press Release@ U.S. Factoring Services Market Report
U.S. Factoring Services Market
Report Highlights
- The international segment is expected to witness a significant CAGR
of 8.8% during the forecast period owing to the rise in open trade
accounts, especially from suppliers in emerging economies. The major
importers or suppliers in developed countries are considering factoring as
a suitable alternative to conventional forms of trade finance, which is
further expected to drive the demand for the factoring services in the
U.S.
- The non-recourse segment is expected to observe a CAGR of 8.6%
during the forecast period. Non-recourse factoring provides lower advanced
rates, no long-term contracts, and full credit cover offered by the
financing company. These benefits will supplement the growth of the
segment in the projection period
- The banks segment is expected to witness significant growth of a
CAGR of 7.9% during the forecast period, due to the increasing requirement
for alternative sources of financing for Micro, Small and Medium
Enterprises (MSMEs). However, the need for working capital should be one
of the priorities of MSMEs while running their business and requirements
can be triggered by the occurrence of seasonal differences in cash flow,
improved business, and events of crisis management among others. Such
challenges faced by MSMEs can be addressed by levering factoring services
by several banks
- The healthcare segment is expected to observe a CAGR of 9.8% during
the forecast period. Insurance-related complications and delays in medical
bill payment of medical companies or professionals due to bureaucracy in
the payment process are likely to accelerate the demand for factoring
services in the healthcare segment during the forecast period
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