The Latest Freight Factoring Industry Statistics Explained
The market size for Factoring Services, inclusive of Freight Factoring in the USA, is $37.2 billion.
The statistic that the market size for Factoring Services, including Freight Factoring, in the USA is $37.2 billion refers to the total value of financial transactions conducted within the factoring industry in the United States. Factoring services involve the sale of accounts receivable at a discounted rate to a third party in order to obtain immediate cash flow. Freight factoring specifically pertains to the trucking industry where companies sell their invoices to factoring companies in exchange for quick access to funds. The $37.2 billion figure represents the overall scale and economic impact of the factoring services industry, highlighting its significance in providing working capital to businesses across various sectors in the USA.
The Factoring Services industry, which includes Freight Factoring, has grown by 3.2% over the previous five years (2016-2021).
The statistic stating that the Factoring Services industry, which encompasses services like Freight Factoring, has recorded a 3.2% growth over the period from 2016 to 2021 indicates a positive trend in this sector. This growth rate suggests that there has been an increasing demand for factoring services over the past five years, possibly driven by factors such as the need for working capital solutions, economic fluctuations, and industry-specific trends. The steady growth in this industry points towards a favorable market environment and potentially reflects the effectiveness of factoring services in supporting businesses with their cash flow needs.
The yearly growth of Freight Factoring is projected at 2.5% in 2022.
The statistic indicates that the Freight Factoring industry is expected to experience a 2.5% increase in its growth rate in the year 2022. This suggests that the industry is anticipated to expand moderately over the course of the year. The growth projection may be influenced by factors such as increasing demand for freight services, economic conditions, and market trends. Stakeholders in the industry can use this statistic to make informed decisions regarding investments, strategic planning, and business operations for the upcoming year.
There are 6,119 businesses in the Factoring Services industry in the US in 2021, a 3.8% increase from 2020.
The statistic indicates that there were 6,119 businesses operating in the Factoring Services industry in the United States in 2021, reflecting a 3.8% increase compared to the previous year. This growth in the number of businesses within the industry suggests a positive trend in the market, potentially driven by factors such as increased demand for factoring services, favorable economic conditions, or emerging opportunities. The rise in the number of businesses can potentially lead to increased competition, innovation, and overall growth within the Factoring Services sector, which could benefit both businesses and consumers utilizing these services.
Revenue for the Factoring Services industry is expected to grow 4% in 2021.
The statistic “Revenue for the Factoring Services industry is expected to grow 4% in 2021” indicates that the total revenue generated by companies providing factoring services is projected to increase by 4% compared to the previous year. This growth rate suggests a positive outlook for the industry, potentially driven by factors such as increased demand for working capital solutions among small and medium-sized businesses, improved economic conditions, or changes in regulations impacting the industry. This statistic demonstrates a potential opportunity for companies operating within the factoring services sector to expand their business and capture a larger market share in the coming year.
In 2020, the global factoring industry volume, including freight factoring, reached €2.9 trillion.
The statistic indicates that in the year 2020, the total volume of the global factoring industry, which includes freight factoring (a financial transaction where a business sells its accounts receivable to a third party at a discount), amounted to €2.9 trillion. This suggests a significant scale of financial transactions where businesses leveraged their accounts receivable for immediate cash flow. The large volume reflects the reliance of companies on factoring services to manage their working capital needs and indicates the importance of this financial instrument in facilitating trade and business operations on a global scale.
Freight bill factoring companies fund over 4,500 trucking companies in the United States.
The statistic “Freight bill factoring companies fund over 4,500 trucking companies in the United States” indicates that there are more than 4,500 trucking companies in the U.S. that receive funding from freight bill factoring companies. Freight bill factoring is a financial service where companies sell their accounts receivable to a third party (factoring company) at a discount in exchange for immediate cash, rather than waiting for customers to pay their invoices. This statistic highlights the significant role that factoring companies play in providing working capital to trucking companies, which helps them improve cash flow, meet operational expenses, and grow their businesses.
Over 3 million truck drivers in the U.S. could potentially require freight factoring services.
The statistic “Over 3 million truck drivers in the U.S. could potentially require freight factoring services” suggests that there is a sizable market for freight factoring services among truck drivers in the United States. Freight factoring is a financial service that allows trucking companies to receive immediate payment for the loads they deliver by selling their accounts receivable to a third-party company at a discount. The fact that over 3 million truck drivers could potentially benefit from such services indicates a significant need for improved cash flow management within the trucking industry, as many drivers may face delayed payments from customers or struggle with cash flow issues. This statistic highlights the potential demand and relevance of freight factoring services in the transportation sector to help truck drivers maintain financial stability and operational efficiency.
Over 70% of all freight moved in the U.S. is via trucks, making it the most common mode of transport.
The statistic that over 70% of all freight moved in the U.S. is via trucks reflects the predominant role of trucking in the transportation industry. This high percentage indicates that trucks are the most widely used mode of transport for transporting goods across the country. The reliance on trucks can be attributed to several factors, including their flexibility, efficiency, and reliability in delivering goods to various destinations. The statistic underscores the significant contribution of the trucking industry to the overall movement of freight in the U.S., highlighting its crucial role in supporting the economy and supply chain logistics.
Invoice factoring, including freight factoring, is set to experience a 5% CAGR over the period of 2020-2027.
The statistic stating that invoice factoring, including freight factoring, is projected to experience a 5% compound annual growth rate (CAGR) over the period of 2020-2027 indicates that the industry is expected to grow steadily at an average rate of 5% per year during this time frame. Invoice factoring is a financial tool used by businesses to improve cash flow by selling their accounts receivable to a third party at a discount. With the increasing importance of managing cash flow effectively, especially in sectors like transportation and logistics where freight factoring plays a key role, the projected growth demonstrates a positive outlook for the industry over the specified period. This growth rate can be attributed to factors such as increasing adoption of invoice factoring solutions by businesses looking to optimize working capital and navigate economic uncertainties.
The turnover of the global factoring and commercial finance industry witnessed an increase of 3% in 2019, implying growth in Freight Factoring too.
The statistic suggests that the total turnover of the global factoring and commercial finance industry increased by 3% in the year 2019. This growth indicates a positive trend in the industry, which includes services such as Freight Factoring. Freight Factoring is a specific type of factoring that provides crucial financial support to trucking and transportation companies by advancing cash based on their outstanding freight invoices. With the overall industry turnover on the rise, it can be inferred that Freight Factoring also experienced growth in its volume of transactions and financial activities in 2019. This positive momentum in the factoring industry reflects increasing business activities and financial opportunities for companies involved in freight transportation services.
In 2019, the North American region represented approximately 15.05% of the global factoring industry.
The statistic indicates that in 2019, the North American region had a significant presence in the global factoring industry, accounting for approximately 15.05% of the total market share. Factoring is a financial service that involves purchasing accounts receivable at a discount, providing businesses with immediate cash flow. The fact that North America represented over 15% of the industry demonstrates the region’s importance and influence within the global marketplace. This statistic suggests that North America is a key player in the factoring industry, contributing significantly to its overall size and performance on a global scale.
The average duration of freight invoice factoring contracts in the US in 2018 was 28 days.
The statistic indicates that, on average, the length of time that freight invoice factoring contracts lasted in the US during the year 2018 was 28 days. Freight invoice factoring is a financial practice where companies sell their accounts receivable to a third party (factor) at a discount to improve cash flow. A contract lasting 28 days suggests that companies were utilizing this service for relatively short periods, potentially to manage short-term financial needs or fluctuations in cash flow. This average duration provides insight into the common practices and trends within the freight invoice factoring industry in the US during that specific year.
Non-recourse factoring, which includes freight factoring, accounted for 44% of the entire factoring volume globally in 2019.
Non-recourse factoring, which includes freight factoring, accounted for 44% of the entire factoring volume globally in 2019, indicating a significant portion of the factoring market. Factoring is a financial transaction where a business sells its accounts receivable to a third party (factor) at a discount. Non-recourse factoring specifically means that the factor assumes the credit risk of the debtor, providing additional protection to the business selling the invoices. The prominence of non-recourse factoring, particularly in the freight industry, suggests that businesses are increasingly turning to this form of financing to improve cash flow and mitigate credit risk. This statistic highlights the importance of non-recourse factoring in the global financial landscape and its role in supporting businesses across various industries.
Independent truck drivers and small freight companies make up to 91% of the total truck driving market in the U.S, and are typically users of freight factoring services.
The statistic shows that independent truck drivers and small freight companies account for a significant majority, up to 91%, of the overall truck driving market in the United States. This indicates that a large portion of the transportation industry in the U.S. is made up of independent operators and small businesses rather than large corporations. Additionally, the statistic points out that these independent truck drivers and small freight companies typically utilize freight factoring services. Freight factoring is a financial service used by trucking companies to improve cash flow by selling their accounts receivable to a third-party factoring company. This suggests that independent truck drivers and small freight companies heavily rely on financial solutions like freight factoring to manage and support their operations.
Domestic factoring represented about 76.1% of the global factoring market in 2019 including the domestic freight factoring market.
The statistic indicates that domestic factoring, which includes domestic freight factoring, accounted for approximately 76.1% of the total global factoring market in the year 2019. This means that a significant majority of factoring activities, which involve the sale of accounts receivable to a third-party company at a discount in exchange for immediate cash flow, were conducted within a country’s borders rather than across international boundaries. Domestic factoring is a common practice used by businesses to improve their cash flow and manage their working capital effectively. The high percentage of domestic factoring highlights the importance of this financial service within national economies and demonstrates its prevalence in supporting businesses with their liquidity needs.
References
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