Latin America Factoring Services Market to grow at a CAGR of 11.9%; Rising demand for SMEs to boost the industry

The Latin America factoring services market size was valued at USD 145.48 billion in 2022 and is anticipated to grow at a CAGR of 11.9% from 2023 to 2030.

NEW YORK CITY, NEW YORK, UNITED STATES, March 20, 2023 /EINPresswire.com/ -- Market Overview:

Factoring is a financial service that involves the purchase of accounts receivable from businesses by a third party at a discount. The Latin America factoring services market has been growing steadily over the years, with factors such as increasing small and medium enterprises (SMEs), improving economic conditions, and favorable government policies contributing to its growth. The demand for factoring services in Latin America is being driven by the growth of SMEs, as these businesses often face cash flow issues due to delayed payments from customers. Factoring services can help SMEs maintain cash flow by providing immediate access to funds.

Largest and Fastest Growing Market:

Brazil is currently the largest market for factoring services in Latin America, accounting for around 50% of the market share. However, Mexico is the fastest-growing market, with a CAGR of 15.2% between 2020-2025.

Key Statistics:

- Brazil is expected to maintain its dominance in the market, while Mexico, Colombia, and Chile are projected to witness significant growth during the forecast period.

- The transportation and logistics sector is the largest user of factoring services in Latin America, accounting for over 50% of the market share.

- Non-recourse factoring is the most popular type of factoring in the region, accounting for over 60% of the market share.

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Top Key Trends:

- Increasing adoption of technology and automation in the factoring industry

- Growing popularity of supply chain financing

- Expansion of factoring services into new industries, such as healthcare and education

Top Impacting Factors:

- Economic conditions and GDP growth

- Government policies and regulations

- Availability of funding and investor interest

- Competition from traditional banks and other financial institutions

Key Benefits for Stakeholders:

- Improved cash flow for businesses

- Reduced risk for lenders and investors

- Increased financial flexibility for businesses

- Improved access to credit for SMEs

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Competitive Landscape

Accion International
Barclays Plc
BNP Paribas
BTG Pactual
Deutsche Factoring Bank
FINAMCO
Hitachi Capital (UK) PLC
HSBC Group
Mizuho Financial Group
Inc.
SMB
TRADEWIND GmbH

Recent Developments:

- In August 2021, the Brazilian government announced plans to expand factoring services to more SMEs as part of its efforts to boost economic growth.

- In June 2021, Mexico's factoring association signed a partnership agreement with the International Factoring Association to promote the development of factoring services in the country.

- In May 2021, the Peruvian government approved a law aimed at promoting the use of factoring services by SMEs.

- In April 2021, the Colombian government announced plans to expand factoring services to more businesses and increase access to financing for SMEs.

Latin America Factoring Services Market: Report Segmentation

Category Outlook (Factoring Volume, USD Million)
Domestic
International

Type Outlook (Factoring Volume, USD Million)
Recourse
Non-recourse

Financial Institution Outlook (Factoring Volume, USD Million)
Banks
Non-banking Financial institutions (NBFIs)

End-use Outlook (Factoring Volume, USD Million)
Manufacturing
Transport & Logistics
Information Technology
Healthcare
Construction
Others (Staffing Agencies, Advertising, Oilfield Services, and Commercial Food & Beverages, among others)

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