Worldwide factoring revenue surpassed €4tn for the first time last year, with growth in the US standing at more than 35%, according to data published by industry association FCI.
FCI said the figures represent a “new milestone” for the industry, particularly after a year of consolidation in 2024, and underscore the role of receivables finance in helping companies unlock liquidity and manage payment risk.
“Despite ongoing global uncertainty, geopolitical tensions, shifting trade patterns and continued pressure on liquidity, factoring remains a vital source of working capital for businesses, particularly SMEs operating in open account trade,” FCI said.
“Receivables finance is no longer a cyclical instrument, but an integral component of modern trade.”
The strongest revenue growth was recorded in the Americas. US factoring turnover increased by 35.5%, while Canada and Mexico posted growth of 20% and 6% respectively, bringing North America’s overall revenue to around €160bn.
Brazil also recorded significant growth, with revenue rising by more than 22%, while factoring turnover across South and Central America reached €165bn, FCI said.
Growth was slower in Asia and Europe – the two largest markets for receivables finance – standing at 3.2% and 2.2% respectively.
However, within Asia, Singapore, India and Taiwan recorded double-digit growth in factoring turnover. China, the world’s largest individual factoring market, grew 5% to €713bn.
In Europe, “moderate contractions” in some countries were offset by solid growth in markets such as France, Germany, Italy, Spain and the UK, FCI said.
The continent remains the largest regional market for receivables finance, generating nearly €2.7tn in revenue last year – around two-thirds of the global total, FCI said.
In the Middle East, the association said turnover grew nearly 9% to €8.8bn, supported by growth in Israel and continued strong performance in the UAE.
FCI noted that data collection and consistency is a challenge in some parts of the Middle East, but the figures point to “continued interest” in receivables finance across the region.
Africa’s factoring market, long hailed as a market offering significant growth potential, expanded by just over 2% to around €51bn.
The South African factoring market remained the largest on the continent, while Morocco was “a significant contributor” and Egypt recorded “notable growth”.
Betül Kurtuluş, FCI’s deputy secretary general, said reaching US$4tn in global turnover “reflects the continued resilience, adaptability and relevance of factoring in supporting businesses through changing market conditions”.
“At a time when many SMEs continue to face challenges accessing traditional finance, factoring offers a practical way to unlock working capital from receivables, mitigate payment risk and support open account trade,” she said.
“It is not only a financing tool, but an important part of the solution in helping narrow the SME trade finance gap and enabling sustainable economic growth.”
