Wilmington, Delaware, Oct. 30, 2023 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled, “India Factoring Services Market by Provider (Banks and NBFCs), Enterprise Size (Large Enterprises and Small and Medium-sized Enterprises (SMEs)), Application (Domestic and International), Product Type (Recourse Factoring and Non-recourse Factoring), and Industry Vertical (Construction, Manufacturing, Healthcare, Transportation and Logistics, Energy and Utilities, IT and Telecom, Staffing, and Others): Country Opportunity Analysis and Industry Forecast, 2019–2032”. According to the report, the India factoring Services industry generated $5.72 billion in 2019 and is anticipated to generate $48.97 billion by 2032, witnessing a CAGR of 11.6% from 2019 to 2032.
Factoring is a form of financing in which businesses sell their receivables to a financial organization in exchange for immediate cash at a discount. Companies are increasingly opting for working capital loans to maintain liquidity and cash flow, especially during economic downturns. In addition, businesses can use instant cash from factoring services to pay their suppliers, staff, and other expenses. The increased use of factoring services by SMEs is also fueling market expansion. SMEs often have difficulties acquiring finance from traditional lenders such as banks due to bad credit records or a lack of collateral. Factoring services provide businesses with an extra financing alternative that allows them to access funds quickly and affordably.
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Prime Determinants of Growth
India factoring services market is witnessing growth due to rise in open account trading opportunities in India. In addition, the necessity for cash flow management and need for alternate sources of financing for SMEs in India fuel the growth of the market. Furthermore, adoption and advancement of blockchain technology is expected to provide lucrative opportunities for the market to witness growth in upcoming years.
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58 – Tables
48 – Charts
186 – Pages
The India factoring services market size was valued at $5.72 billion in 2019 and is projected to reach $48.97 billion by 2032, growing at a CAGR of 11.6% from 2024 to 2032.
Report Coverage & Details:
| Report Coverage | Details |
| Forecast Period | 2024–2032 |
| Base Year | 2019 |
| Market Size in 2019 | $5.72 billion |
| Market Size in 2032 | $48.97 billion |
| CAGR | 11.6% |
| No. of Pages in Report | 186 |
| Segments Covered | Provider, Enterprise Size, Application, Product Type, and Industry Vertical. |
| Drivers | Rise in open account trading opportunities in India The necessity for cash flow management Need for alternate sources of financing for SMEs in India |
| Opportunities | Adoption and advancement of blockchain technology |
| Restraints | Lack of a stringent regulatory framework for debt recovery mechanisms Higher finance charges |
COVID-19 Scenario
- The COVID-19 pandemic had a negative impact on India factoring services market size, owing to the sudden lockdown in 2020. The sudden emergence of the COVID-19 pandemic has impacted the Indian economy by causing supply chain and market disruptions and has had a severe financial impact on businesses and financial markets in India.
- Moreover, as the pandemic situation improved and economic activities gradually resumed, the factoring services market in India also started to recover. Thus, these factors affected the India factoring services industry.
The banks segment to maintain its leadership status throughout the forecast period
Based on the provider, the banks segment held the highest market share in 2019, accounting for more than four-fifths of the India factoring services market revenue and is estimated to maintain its leadership status throughout the forecast period. This is attributed to the fact that it provides secure factoring services with minimum chances of fraud. Bank factoring firms use the same steps as traditional factoring firms. However, the NBFCs segment is projected to manifest the highest CAGR of 14.3% from 2024 to 2032, owing to the increasing government regulations enabling them to provide factoring services to SMEs.
The large enterprises segment to maintain its leadership status throughout the forecast period
Based on the enterprise size, the large enterprises segment held the highest market share in 2019, accounting for more than two-thirds of the India factoring services market revenue, owing to the continuous technological advancements in factoring services, including the usage of blockchain technology, cryptocurrency, and large-scale transactions. However, the small and medium-sized enterprises segment is projected to manifest the highest CAGR of 13.9% from 2024 to 2032, as small and medium-sized enterprises are the primary adopters of this financing facility, and the interest rates for both recourse and non-recourse factoring are almost the same in India.
The domestic segment to maintain its leadership status throughout the forecast period
Based on the application, the domestic segment held the highest market share in 2019, accounting for more than four-fifths of the India factoring services market revenue, owing to the increasing need for working capital among small and medium-sized enterprises (SMEs). However, the international segment is projected to manifest the highest CAGR of 14.8% from 2024 to 2032. This is attributed to globalization, where Indian businesses are expanding their operations beyond national borders, leading to increased cross-border trade. As these businesses engage in international transactions, they often face complex payment and financing challenges, creating a demand for factoring services.
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The recourse factoring segment to maintain its leadership status throughout the forecast period
Based on product type, the recourse factoring segment held the highest market share in 2019, accounting for nearly three-fourths of the India factoring services market revenue, and is projected to manifest the highest CAGR of 12.3% from 2024 to 2032. This is attributed to the recourse factoring’s cost-effectiveness for businesses since the factor doesn't have to include the risk premium associated with non-payment. Furthermore, it offers greater flexibility in terms of invoice selection and transaction volume.
The manufacturing segment to maintain its leadership status throughout the forecast period
Based on industry vertical, the manufacturing segment held the highest market share in 2019, accounting for nearly two-fifths of the India factoring services market revenue. This is attributed to the fact that small business owners in the manufacturing industry who need immediate working capital and don’t want to add debt are adopting manufacturing invoice factoring to sell their unpaid invoices to a factoring company for a cash advance. However, the healthcare segment is projected to manifest the highest CAGR of 17.0% from 2024 to 2032, owing to the expansion of medical facilities, including hospitals, clinics, and diagnostic centers, which increases the demand for financing solutions.
Leading Market Players: -
- Barclays Bank PLC
- BNP Paribas
- SBI Global Factors Limited
- TreasuryXL
- FIM Bank
- Tata Capital Financial Services Limited
- IDBI Bank
- Aditya Birla Capital Ltd.
- Yes Bank
- Bank of Baroda
The report provides a detailed analysis of these key players in the global India Factoring Services market. These players have adopted different strategies such as expansion, merger, and product launch to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
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Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the India factoring services market analysis from 2024 to 2032 to identify the prevailing India factoring services market opportunity.
- Market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the India factoring services market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as India factoring services market trends, key players, market segments, application areas, and market growth strategies.
India Factoring Services Market Report Highlights
Aspects Details
By Industry Vertical
- Construction
- Manufacturing
- Healthcare
- Transportation & Logistics
- Energy & Utilities
- IT & Telecom
- Staffing
- Others
By Product Type
- Recourse Factoring
- Non-recourse factoring
By Provider
- Banks
- NBFCs
By Enterprise Size
- Large Enterprises
- Small and Medium-sized Enterprises (SMEs)
By Application
- Domestic
- International
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