Summary

U.K. Factoring Services Market Growth & Trends

The U.K. factoring services market size is estimated to reach USD 568.90 billion by 2030, growing at a CAGR of 6.8% from 2023 to 2030, according to the recent reports of Grand View Research, Inc. Small businesses are turning to alternate finance sources in the wake of tighter lending standards. Roughly 75%–80% of an invoice’s face value is factored to end-users or lending manufacturers, and the remaining invoice amount is paid back whenever the billed party receives funds. The factor then absorbs the discounted amount as a fee for its services. Furthermore, the cross-border financing business has developed significantly over the past years. Multiple interconnected variables are the reasons for the growth of financing businesses.

The demand has been fueled by technological advancements and commercial globalization. These factors would further supplement the market growth during the forecast period. In factoring services, end-use industries, such as staffing agencies, commercial food & beverages firms, oilfield services, and advertising firms, are relying on factoring services. Rapid industrialization and urbanization across the globe are propelling the need for financial capital, thereby supporting the industry trend. In the food & beverage (F&B) sector, companies face challenges in balancing cash flow across all their business operations due to outstanding bills by their stakeholders and unstable product demand that is highly dependent on seasons.

To manage payrolls & overhead expenses, F&B companies opt for alternative financing solutions, such as factoring, for managing their business operations. International factoring services are required for all firms engaged in international trade, regardless of size or sector. Furthermore, importers in industrialized countries see factoring as a viable alternative to traditional trade finance methods. As regulators place a greater emphasis on data management, widespread adoption of real-time payment networks helps decrease difficulties in trade finance. Apart from minimizing credit risk, international factoring provides other advantages, including quick access to information on current & future clients, development into overseas markets, less documentation, enhanced working capital, and overcoming foreign customs obstacles.

U.K. Factoring Services Market Report Highlights

• The international segment is expected to register a CAGR of 7.3% from 2023 to 2030. Major importers and suppliers in developed countries are contemplating factoring as an alternative to traditional forms of trade finance, which is projected to drive demand for factoring services in the U.K.

• The non-recourse segment is expected to register a CAGR of 7.3% from 2023 to 2030 due to the widespread adoption of non-recourse factoring in developed and developing countries

• The Non-banking Financial Institutions (NBFIs) segment is expected to register a CAGR of 7.8% from 2023 to 2030. Artificial intelligence (AI), machine learning (ML), and blockchain are used by NBFIs, such as JPMorgan Chase and Wells Fargo, to utilize their partnership networks across the value chain of lead generation, credit/loan disbursement, and customer onboarding

• The healthcare segment is expected to register a CAGR of 8.4% from 2023 to 2030. Factoring services enable healthcare businesses to mitigate credit risks and obtain working capital loans

• Furthermore, ML and AI technologies provide operational savings, ease payment applications, avoid underwriting, and identify fraud risk. These technologies have been adopted by various healthcare factoring companies to offer innovative products and remain competitive in the market

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Table of Contents

Table of Contents

Chapter 1. Methodology and Scope
1.1. Methodology Segmentation & Scope
1.2. Information procurement
1.2.1. Purchased database
1.2.2. GVR’s internal database
1.2.3. Secondary sources & third-party perspectives
1.2.4. Primary research
1.3. Information analysis
1.3.1. Data analysis models
1.4. Market formulation & data visualization
1.5. Data validation & publishing
Chapter 2. Executive Summary
2.1. Market Snapshot
2.2. Segment Snapshot
2.3. Competitive Snapshot
Chapter 3. U.K. Factoring Services Market Variables, Trends & Scope
3.1. Market Lineage Outlook
3.2. Industry Value Chain Analysis
3.3. Market Dynamics
3.3.1. Market Driver Analysis
3.3.2. Market Restraint/Challenge Analysis
3.3.3. Market Opportunity Analysis
3.4. Business Environment Analysis Tools
3.4.1. Porter's Five Forces Analysis
3.4.2. PEST Analysis
3.5. COVID-19 Impact Analysis
Chapter 4. U.K. Factoring Services Market Category Outlook
4.1. U.K. Factoring Services Market Share by Category 2022 & 2030 (USD Billion)
4.2. Domestic
4.2.1. Market size estimates and forecasts, 2018 - 2030 (USD Billion)
4.3. International
4.3.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
Chapter 5. U.K. Factoring Services Market Type Outlook
5.1. U.K. Factoring Services Market Share by Type 2022 & 2030 (USD Billion)
5.2. Recourse
5.2.1. Market size estimates and forecasts, 2018 - 2030 (USD Billion)
5.3. Non-recourse
5.3.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
Chapter 6. U.K. Factoring Services Market Financial Institution Outlook
6.1. U.K. Factoring Services Market Share by Financial Institution 2022 & 2030 (USD Billion)
6.2. Banks
6.2.1. Market size estimates and forecasts, 2018 - 2030 (USD Billion)
6.3. NBFIs
6.3.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
Chapter 7. U.K. Factoring Services Market End Use Outlook
7.1. U.K. Factoring Services Market Share by End Use 2022 & 2030 (USD Billion)
7.2. Manufacturing
7.2.1. Market size estimates and forecasts, 2018 - 2030 (USD Billion)
7.3. Transport & Logistics
7.3.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
7.4. Information Technology
7.4.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
7.5. Healthcare
7.5.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
7.6. Construction
7.6.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
7.7. Others
7.7.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
Chapter 8. Competitive Landscape
8.1. Company Categorization (Mature Players, Emerging Players)
8.2. Company Share Analysis, 2022
8.3. Heat Map Analysis
8.4. Strategy Mapping
8.4.1. Expansion
8.4.2. Merger & Acquisition
8.4.3. Partnerships & Collaborations
8.4.4. Product/Service Launch
8.4.5. Investment
8.5. Company Profiles (Overview, Financial Performance, Product Overview, Strategic Initiatives)
8.5.1. Barclays Plc
8.5.2. BNP Paribas
8.5.3. HSBC Group
8.5.4. eCapital, Inc.
8.5.5. Aldermore Bank PLC
8.5.6. Bank of Scotland plc.
8.5.7. Bibby Financial Services Ltd
8.5.8. Close Brothers Group plc.
8.5.9. Danske Bank Group
8.5.10. EUROBANK
8.5.11. Lloyds Bank plc.
8.5.12. Nucleus Commercial Finance
8.5.13. Paragon Bank PLC
8.5.14. Pulse Cashflow Finance Ltd
8.5.15. Skipton Business Finance Ltd