The Europe Reverse Factoring Market should witness market growth of 10.7% CAGR during the forecast period (2023-2029).
The real sale of a receivable occurs during factoring. For a charge that is handled between big merchants and banks, reverse factoring would enable suppliers to get paid on time. By agreeing to this supply chain financing arrangement, the funder is obligated to give the seller (where requested) financing that is advanced against the account payable (AP) after the buyer has authorized the invoice submitted from the seller. At the time specified on the issued invoice, the buyer then compensates the funder.
In some cycles, the necessity for this mechanism is brought on by large businesses' protracted payment delays to suppliers. Huge organizations (like retailers) will consent to pay a bank the money that is owed to trade creditors, and banks will subsequently pay suppliers the amount that is due to them promptly rather than after waiting for 30-90 days, which is required by the large retailers.
In a measure that boosted job development and assisted ambitious firms in succeeding, the Government of the UK made a deal with top UK companies that assisted businesses in getting increasing amounts of affordable credit. This indicates that top businesses provided their suppliers, many of which are UK SMEs, with up to £20 billion in new, more affordable financing. The Prime Minister of the United Kingdom added that the Government would provide this to its suppliers, starting with the first-ever Government Supply Chain Finance scheme for community-based pharmacies in England. This scheme will open up to £800 million in new credit for approximately 4,500 pharmacy businesses, mostly SMEs. The Prime Minister of the United Kingdom also stated that the Government will offer this to its suppliers.
Additionally, reverse factoring is also being utilized in the region in the construction sector. Renovations of buildings may be financed at the EU level using various funding sources. Among the most significant are Horizon 2020, the ELENA facility, the European Fund for Strategic Investments (EFSI), the European Structural and Investment Funds (ESIF), and the European Structural and Investment Funds (ESIF). Hence, the growing influence of numerous finance schemes throughout the region will also increase the demand.
The Germany market dominated the Europe Reverse Factoring Market by Country in 2022 and would continue to be a dominant market till 2029; thereby, achieving a market value of $119.3 Billion by 2029. The UK market is exhibiting a CAGR of 9.8% during (2023-2029). Additionally, The France market would register a CAGR of 11.6% during (2023-2029).
Based on Category, the market is segmented into Domestic and International. Based on Financial Institution, the market is segmented into Banks and Non-banking Financial Institutions. Based on End-use, the market is segmented into Manufacturing, Transport & Logistics, Information Technology, Healthcare, Construction and Others. Based on countries, the market is segmented into Germany, UK, France, Russia, Spain, Italy, and Rest of Europe.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include HSBC Holdings plc, Barclays PLC, JPMorgan Chase & Co., Banco Bilbao Vizcaya Argentaria SA, Deutsche Factoring Bank GmbH & Co. KG (Deutsche Leasing), Drip Capital Inc., PrimeRevenue, Inc., Trade Finance Global, Tradewind GmbH, and Credit Suisse Group AG.
The real sale of a receivable occurs during factoring. For a charge that is handled between big merchants and banks, reverse factoring would enable suppliers to get paid on time. By agreeing to this supply chain financing arrangement, the funder is obligated to give the seller (where requested) financing that is advanced against the account payable (AP) after the buyer has authorized the invoice submitted from the seller. At the time specified on the issued invoice, the buyer then compensates the funder.
In some cycles, the necessity for this mechanism is brought on by large businesses' protracted payment delays to suppliers. Huge organizations (like retailers) will consent to pay a bank the money that is owed to trade creditors, and banks will subsequently pay suppliers the amount that is due to them promptly rather than after waiting for 30-90 days, which is required by the large retailers.
In a measure that boosted job development and assisted ambitious firms in succeeding, the Government of the UK made a deal with top UK companies that assisted businesses in getting increasing amounts of affordable credit. This indicates that top businesses provided their suppliers, many of which are UK SMEs, with up to £20 billion in new, more affordable financing. The Prime Minister of the United Kingdom added that the Government would provide this to its suppliers, starting with the first-ever Government Supply Chain Finance scheme for community-based pharmacies in England. This scheme will open up to £800 million in new credit for approximately 4,500 pharmacy businesses, mostly SMEs. The Prime Minister of the United Kingdom also stated that the Government will offer this to its suppliers.
Additionally, reverse factoring is also being utilized in the region in the construction sector. Renovations of buildings may be financed at the EU level using various funding sources. Among the most significant are Horizon 2020, the ELENA facility, the European Fund for Strategic Investments (EFSI), the European Structural and Investment Funds (ESIF), and the European Structural and Investment Funds (ESIF). Hence, the growing influence of numerous finance schemes throughout the region will also increase the demand.
The Germany market dominated the Europe Reverse Factoring Market by Country in 2022 and would continue to be a dominant market till 2029; thereby, achieving a market value of $119.3 Billion by 2029. The UK market is exhibiting a CAGR of 9.8% during (2023-2029). Additionally, The France market would register a CAGR of 11.6% during (2023-2029).
Based on Category, the market is segmented into Domestic and International. Based on Financial Institution, the market is segmented into Banks and Non-banking Financial Institutions. Based on End-use, the market is segmented into Manufacturing, Transport & Logistics, Information Technology, Healthcare, Construction and Others. Based on countries, the market is segmented into Germany, UK, France, Russia, Spain, Italy, and Rest of Europe.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include HSBC Holdings plc, Barclays PLC, JPMorgan Chase & Co., Banco Bilbao Vizcaya Argentaria SA, Deutsche Factoring Bank GmbH & Co. KG (Deutsche Leasing), Drip Capital Inc., PrimeRevenue, Inc., Trade Finance Global, Tradewind GmbH, and Credit Suisse Group AG.
Scope of the Study
By Category
- Domestic
- International
By Financial Institution
- Banks
- Non-banking Financial Institutions
By End-use
- Manufacturing
- Transport & Logistics
- Information Technology
- Healthcare
- Construction
- Others
By Country
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
Key Market Players
List of Companies Profiled in the Report:
- HSBC Holdings plc
- Barclays PLC
- JPMorgan Chase & Co.
- Banco Bilbao Vizcaya Argentaria SA
- Deutsche Factoring Bank GmbH & Co. KG (Deutsche Leasing)
- Drip Capital Inc.
- PrimeRevenue, Inc.
- Trade Finance Global
- Tradewind GmbH
- Credit Suisse Group AG
Unique Offerings
- Exhaustive coverage
- The highest number of Market tables and figures
- Subscription-based model available
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- Assured post sales research support with 10% customization free
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 3. Europe Reverse Factoring Market by Category
Chapter 4. Europe Reverse Factoring Market by Financial Institution
Chapter 5. Europe Reverse Factoring Market by End-use
Chapter 6. Europe Reverse Factoring Market by Country
Chapter 7. Company Profiles
Companies Mentioned
- HSBC Holdings plc
- Barclays PLC
- JPMorgan Chase & Co.
- Banco Bilbao Vizcaya Argentaria SA
- Deutsche Factoring Bank GmbH & Co. KG (Deutsche Leasing)
- Drip Capital Inc.
- PrimeRevenue, Inc.
- Trade Finance Global
- Tradewind GmbH
- Credit Suisse Group AG
Methodology
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