U.S. Factoring Services Market Summary

The U.S. factoring services market size was valued at USD 171.98 billion in 2024 and is anticipated to expand at a CAGR of 9.4% from 2025 to 2030. The increasing demand for alternative financing options among Small and Medium Enterprises (SMEs) is one of the primary factors driving this growth. Factoring provides SMEs with a much-needed solution to address delayed payments and manage financial pressure effectively. In addition, the growing adoption of blockchain technology and cryptocurrency in factoring services is transforming the industry landscape by improving transparency, efficiency, and transaction security. Fintech companies are increasingly offering factoring solutions tailored for SMEs and freelancers, thereby enhancing accessibility to short-term financing. Furthermore, organizations such as Factors Chain International (FCI) are creating global cooperation networks in cross-border factoring, enabling companies to expand beyond domestic markets and streamline international transactions.

The rising implementation of advanced technologies, including Machine Learning (ML), Natural Language Processing (NLP), and Artificial Intelligence (AI), is creating profitable opportunities for the U.S. factoring services market. These technologies are being leveraged to automate processes, improve risk assessment, and optimize decision-making in factoring transactions. For example, in July 2021, RTS Financial Service, a U.S.-based factoring firm, partnered with PCS Software, an AI-driven transportation management platform, to enhance factoring capabilities and provide additional benefits such as fuel savings to carriers and shippers. Such partnerships reflect the role of innovation in transforming factoring services for medium to large enterprises across the U.S. and Canada.

Key Market Trends & Insights

• By type, the domestic factoring segment held the largest share of 76.8% in 2024, primarily due to the rapid adoption of receivable factoring methods by industries seeking reliable financing alternatives. Domestic factoring helps businesses maintain cash flow, manage credit risk, and ensure operational stability in the face of payment delays.
• The recourse factoring segment accounted for the largest share in 2024. Widely adopted across U.S. enterprises, recourse factoring allows businesses to access funds upfront, rather than waiting for individual debtors to make payments, thereby providing an efficient financing mechanism for managing working capital requirements.
• Banks dominated the factoring services market in 2024, driven by the integration of blockchain platforms to enhance service efficiency and transparency. Leading banks such as Wells Fargo and Morgan Stanley continue to play a key role in providing factoring services that convert receivables into immediate cash. These services help organizations overcome cash flow challenges and strengthen working capital management, ensuring financial continuity.
• The manufacturing sector accounted for the largest share of the market in 2024. This growth is supported by the rising need for funding among micro, small, and medium-sized manufacturing units. Factoring services help these businesses maintain inventory levels, manage supply chains, and improve liquidity, ultimately enabling them to enhance competitiveness in both domestic and international markets.

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Market Size & Forecast

• 2024 Market Size: USD 171.98 billion
• 2030 Projected Market Size: USD 287.61 billion
• CAGR (2025 - 2030): 9.4%

Key Companies & Market Share Insights

Key companies active in the U.S. factoring services market include HSBC Group, BNP Paribas, Barclays Plc, CIT Group Inc., and the Southern Bank Company. These players are pursuing strategic initiatives such as mergers and acquisitions, product launches, and partnerships to expand their market footprint. HSBC Group, as a global financial leader, provides a wide portfolio of financial services ranging from commercial lending and payment solutions to investment management and trade facilitation. Similarly, Barclays Plc, a major universal bank, emphasizes partnerships and collaborations as part of its core strategy to strengthen its presence in the factoring market.

Key Players

• HSBC Group
• BNP Paribas
• Barclays Plc
• RTS Financial Services, Inc.
• TCI Business Capital
• Riviera Finance of Texas, Inc.
• CIT Group Inc.
• Triumph Business Capital
• Breakout Capital, LLC
• Charter Capital Holdings LP

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Conclusion

The U.S. factoring services market is set to witness robust growth, fueled by rising SME financing needs, technological advancements, and the adoption of blockchain-based platforms. Domestic factoring and recourse factoring remain the dominant models, while banks continue to play a pivotal role in ensuring liquidity support for enterprises. The manufacturing sector is driving demand due to its reliance on working capital optimization and inventory management. With established players like HSBC and Barclays strengthening portfolios through partnerships and fintech firms driving innovation, the market outlook is promising. Overall, the sector will expand as companies seek efficient, transparent, and flexible financing solutions.