PUBLISHER: Grand View Research | PRODUCT CODE: 1376080
PUBLISHER: Grand View Research | PRODUCT CODE: 1376080
The U.K. factoring services market size is estimated to reach USD 568.90 billion by 2030, growing at a CAGR of 6.8% from 2023 to 2030, according to the recent reports of Grand View Research, Inc.. Small businesses are turning to alternate finance sources in the wake of tighter lending standards. Roughly 75%-80% of an invoice's face value is factored to end-users or lending manufacturers, and the remaining invoice amount is paid back whenever the billed party receives funds. The factor then absorbs the discounted amount as a fee for its services. Furthermore, the cross-border financing business has developed significantly over the past years. Multiple interconnected variables are the reasons for the growth of financing businesses.
The demand has been fueled by technological advancements and commercial globalization. These factors would further supplement the market growth during the forecast period. In factoring services, end-use industries, such as staffing agencies, commercial food & beverages firms, oilfield services, and advertising firms, are relying on factoring services. Rapid industrialization and urbanization across the globe are propelling the need for financial capital, thereby supporting the industry trend. In the food & beverage (F&B) sector, companies face challenges in balancing cash flow across all their business operations due to outstanding bills by their stakeholders and unstable product demand that is highly dependent on seasons.
To manage payrolls & overhead expenses, F&B companies opt for alternative financing solutions, such as factoring, for managing their business operations. International factoring services are required for all firms engaged in international trade, regardless of size or sector. Furthermore, importers in industrialized countries see factoring as a viable alternative to traditional trade finance methods. As regulators place a greater emphasis on data management, widespread adoption of real-time payment networks helps decrease difficulties in trade finance. Apart from minimizing credit risk, international factoring provides other advantages, including quick access to information on current & future clients, development into overseas markets, less documentation, enhanced working capital, and overcoming foreign customs obstacles.