PUBLISHER: Grand View Research | PRODUCT CODE: 1493485
PUBLISHER: Grand View Research | PRODUCT CODE: 1493485
The global staffing factoring services market size is anticipated to reach USD 202.55 billion by 2030 and is projected to grow at the CAGR of 6.6% from 2024 to 2030, according to a new study by Grand View Research, Inc. A noticeable timing gap between paying temporary workers and receiving payment from clients is common for staffing agencies, a phenomenon that often leads to cash flow challenges. Factoring services can bridge this gap by advancing funds against accounts receivable, helping staffing agencies ensure efficient cash flow management by providing the necessary liquidity to cover operating expenses, payroll, and other financial obligations. Efficient cash flow management can subsequently foster confidence among staffing agencies, enabling them to focus on business growth and expansion initiatives.
The booming gig economy, characterized by independent contractors and freelancer workers, is also contributing to the growing demand for temporary staffing as companies tap into this pool of talent for short-term projects or specialized tasks. The growing preference for temporary staffing extends beyond traditional industries to sectors such as technology, healthcare, and finance. This expansion of the temporary staffing market leads to an increased number of staffing agencies seeking factoring services to support their operations. As a result, the client base for factoring companies expands, driving market growth.
Online factoring platforms, digital payment solutions, and automated processes are further streamlining the factoring process, reducing administrative burdens and improving customer experiences. On the other hand, advances in Artificial Intelligence (AI) and Machine Learning (ML) are helping identify fraud risk, avoid underwriting, generate operational savings, and ease payments. Fintech and banks are aggressively adopting these technologies to offer innovative products and remain competitive in the market. Several emerging companies in the banking industry have also started offering non-recourse factoring services, thus increasing the demand for these services.