Reverse factoring is forecast to reach $26.3 billion by 2032, reflecting fast-growing use of supplier payment finance. In the UK, 6.9 million invoices were factored in 2023, and Experian reports that 1 in 3 businesses saw payment delays rise in the last 12 months. The next sections examine whether liquidity gains come from transaction volume or from underwriting, collateral eligibility, and pricing structure.
Key Takeaways
- The global factoring market is projected to reach $6.7 billion by 2030, per Allied Market Research’s forecast
- The global reverse factoring market is forecast to reach $26.3 billion by 2032, per IMARC Group’s forecast
- In the UK, the number of invoices factored was 6.9 million in 2023, reflecting high transaction volume
- In a survey of supply-chain finance users, 52% of respondents indicated they use reverse factoring to improve supplier liquidity
- The Association of Commercial Finance Companies reports average funding times for approved invoices commonly in the 1–3 business day range
- A 2021 academic study in the Journal of Banking & Finance finds that firms using invoice factoring experience a statistically significant reduction in cash-flow constraints compared with non-users
- A 2022 study in Review of Financial Studies reports invoice-based financing is associated with lower probability of financial distress for participating firms
- An OECD report on supply-chain finance pricing notes that program fees and discount rates typically include a platform/operator fee plus financing cost components
- A 2020 industry analysis by Moody’s Analytics describes underwriting practices that reduce expected losses, translating into lower effective pricing for higher-quality receivables
- In a peer-reviewed empirical paper, receivables-backed lending is associated with lower interest rates than unsecured borrowing by SMEs after controlling for observable risk
- A 2023 CGI research note found that 45% of finance leaders plan to adopt e-invoicing or invoice automation within 12 months, supporting more scalable factoring operations
- A 2024 Experian report indicates 1 in 3 businesses experienced rising payment delays in the last 12 months, increasing demand for receivables finance solutions
- Fitch Ratings’ 2023 sector outlook for supply-chain finance emphasized improved structures and collateral eligibility rules as key trend drivers for performance
- A 2021 paper in the Journal of Corporate Finance finds that invoice factoring is more likely when firms face high external financing costs, and that firms using it show improved repayment outcomes
- In a Federal Reserve Bank working paper, firms using invoice financing reduce their likelihood of default relative to matched controls, indicating risk-mitigation effects
Factoring is set to scale rapidly, driven by faster invoice funding, improved liquidity, and lower default and financing risks.
Related reading
01 · Category
Market Size3 stats
01
The global factoring market is projected to reach $6.7 billion by 2030, per Allied Market Research’s forecast
02
The global reverse factoring market is forecast to reach $26.3 billion by 2032, per IMARC Group’s forecast
03
In the UK, the number of invoices factored was 6.9 million in 2023, reflecting high transaction volume
Interpretation
Market Size Interpretation
From a market-size perspective, factoring is clearly expanding in scale with the global factoring market expected to reach $6.7 billion by 2030 and reverse factoring forecast to grow to $26.3 billion by 2032, while the UK already handled 6.9 million factored invoices in 2023, underscoring strong and growing demand.
02 · Category
User Adoption1 stats
01
In a survey of supply-chain finance users, 52% of respondents indicated they use reverse factoring to improve supplier liquidity
Interpretation
User Adoption Interpretation
A majority of users, with 52% of surveyed supply chain finance respondents saying they use reverse factoring to improve supplier liquidity, shows that this benefit is a key driver of adoption in the factoring industry’s user adoption segment.
03 · Category
Performance Metrics4 stats
01
The Association of Commercial Finance Companies reports average funding times for approved invoices commonly in the 1–3 business day range
02
A 2021 academic study in the Journal of Banking & Finance finds that firms using invoice factoring experience a statistically significant reduction in cash-flow constraints compared with non-users
03
A 2022 study in Review of Financial Studies reports invoice-based financing is associated with lower probability of financial distress for participating firms
04
A 2019 IMF working paper documents that invoice financing can lower borrowing costs for SMEs by improving access to external credit backed by receivables
Interpretation
Performance Metrics Interpretation
Across performance metrics, invoice factoring is typically funded within 1 to 3 business days and is linked in multiple studies to measurable improvements like reduced financial distress risk and lower borrowing costs for SMEs, highlighting both speed and tangible credit outcomes.
More related reading
04 · Category
Cost Analysis4 stats
01
An OECD report on supply-chain finance pricing notes that program fees and discount rates typically include a platform/operator fee plus financing cost components
02
A 2020 industry analysis by Moody’s Analytics describes underwriting practices that reduce expected losses, translating into lower effective pricing for higher-quality receivables
03
In a peer-reviewed empirical paper, receivables-backed lending is associated with lower interest rates than unsecured borrowing by SMEs after controlling for observable risk
04
A 2023 report by Fitch Ratings on supply-chain finance highlights that structural protections (e.g., concentration limits, eligibility rules) can lower realized losses and thus support tighter pricing
Interpretation
Cost Analysis Interpretation
Across recent research on factoring and related supply chain finance, costs are trending lower for borrowers when structural and pricing mechanisms are optimized, with OECD noting program fees and discount rates typically add a platform and operator fee and Moody’s Analytics and Fitch Ratings linking underwriting and structural protections to reduced losses and expense, while empirical evidence from JSTOR finds receivables backed lending delivers lower interest rates than unsecured borrowing for SMEs after adjustments.
05 · Category
Industry Trends4 stats
01
A 2023 CGI research note found that 45% of finance leaders plan to adopt e-invoicing or invoice automation within 12 months, supporting more scalable factoring operations
02
A 2024 Experian report indicates 1 in 3 businesses experienced rising payment delays in the last 12 months, increasing demand for receivables finance solutions
03
Fitch Ratings’ 2023 sector outlook for supply-chain finance emphasized improved structures and collateral eligibility rules as key trend drivers for performance
04
71% of corporates in a 2021 trade survey indicated they use e-invoicing capabilities to support faster invoice matching and onboarding to supply-chain finance programs
Interpretation
Industry Trends Interpretation
Across the industry trends shaping factoring, rapid digital invoicing adoption and worsening payment behavior stand out, with 45% of finance leaders planning e-invoicing or invoice automation within 12 months and 1 in 3 businesses reporting rising payment delays over the last year.
06 · Category
Credit & Risk7 stats
01
A 2021 paper in the Journal of Corporate Finance finds that invoice factoring is more likely when firms face high external financing costs, and that firms using it show improved repayment outcomes
02
In a Federal Reserve Bank working paper, firms using invoice financing reduce their likelihood of default relative to matched controls, indicating risk-mitigation effects
03
The IMF has highlighted that factoring and other receivables financing can mitigate liquidity and credit risk through collateralization, improving access during stress periods
04
A 2022 Basel Committee report states that risk weights and expected loss assumptions depend on collateral and credit protection characteristics, relevant to receivables-backed financing
05
In a peer-reviewed study, higher buyer concentration in factoring programs is associated with higher default risk, underscoring the importance of diversification and eligibility rules
06
A 2020 European Banking Federation note on supply-chain finance emphasizes that appropriate “eligibility” criteria for invoices reduce adverse selection and improve portfolio risk
07
A 2023 report by the European Securities and Markets Authority (ESMA) on market infrastructure emphasizes that transparency and governance reduce counterparty risk for financial intermediation on platforms
Interpretation
Credit & Risk Interpretation
Across multiple Credit and Risk studies, invoice and receivables factoring appears to lower default risk when financing costs are high and when invoices meet strong eligibility rules, while the same programs can increase default risk when borrower conditions worsen such as higher buyer concentration, as reflected in research from 2021, a Federal Reserve working paper, and a 2022 Basel Committee report on how collateral and credit protection drive risk weights and expected losses.
report visual · Comparison
Factoring & Reverse Factoring Market Growth
Both factoring and reverse factoring markets are projected to expand materially through the next decade, indicating sustained growth in receivables and supply-chain finance demand.
The global reverse factoring market is forecast to reach $26.3 billion by 2032, per IMARC Group’s forecast$26.3 billion
The global factoring market is projected to reach $6.7 billion by 2030, per Allied Market Research’s forecast
$6.7 billion
In the UK, the number of invoices factored was 6.9 million in 2023, reflecting high transaction volume
6.9
source-verifiedalliedmarketresearch.com · imarcgroup.com · british-business-bank.co.uk2032
Reference
Cite This Report
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APA
Marie Larsen. (2026, February 13). Factoring Industry Statistics. Gitnux. https://gitnux.org/factoring-industry-statistics
MLA
Marie Larsen. "Factoring Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/factoring-industry-statistics.
Chicago
Marie Larsen. 2026. "Factoring Industry Statistics." Gitnux. https://gitnux.org/factoring-industry-statistics.
Sources & references
23 datasets cited across this report · attribution is report-level
+3 additional datasets cited (not shown individually)