According to a forecast from Technavio, the size of the factoring market is expected to increase by $1,457.01 billion between 2021 and 2025, registering a CAGR of almost 7.48% during the forecast period.
According to the forecast, the factoring market will be driven by the growing need for alternative sources of financing for MSMEs, enhanced liquidity for efficient working capital management and improved inventory management. However, impacts due to trade wars and a lack of stringent regulatory frameworks for debt recovery mechanisms in developing countries are a few factors that Technavio cited as having the potential to limit the market’s growth in the coming years.
