Reverse Factoring Market Report 2026

The reverse factoring market size has grown strongly in recent years. It will grow from $588.53 billion in 2025 to $645.05 billion in 2026 at a compound annual growth rate (CAGR) of 9.6%. The growth in the historic period can be attributed to increasing complexity of global supply chains, rising demand for working capital optimization, expansion of multinational procurement networks, growing reliance on trade finance solutions, increased participation of financial institutions.

The reverse factoring market size is expected to see strong growth in the next few years. It will grow to $925.36 billion in 2030 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to increasing adoption of digital supply chain finance platforms, rising focus on real-time invoice financing, expansion of global supplier networks, growing integration with enterprise resource planning systems, increasing demand for liquidity risk mitigation. Major trends in the forecast period include increasing adoption of supply chain finance platforms, rising use of digital invoice management systems, growing integration of buyer-led financing models, expansion of cross-border reverse factoring solutions, enhanced focus on supplier liquidity optimization.

The growing adoption of reverse factoring by manufacturers is expected to drive the growth of the reverse factoring market in the coming years. Manufacturers are businesses that produce goods by utilizing labor, machinery, and raw materials, transforming them into finished products for sale. The rising use of reverse factoring by manufacturers is primarily driven by the need to improve supplier cash flow and ensure smooth supply chain operations despite financial challenges. Reverse factoring in manufacturing boosts liquidity for suppliers, minimizes payment disputes, and stabilizes production schedules. For example, in November 2024, according to the Office for National Statistics, a UK-based government department, the net rate of return for manufacturing companies in the second quarter of 2024 was 7.3%, showing a slight increase of 0.1 percentage points from the 7.2% recorded in the first quarter of 2024. Thus, the growing adoption of reverse factoring by manufacturers is fueling the expansion of the reverse factoring market.

Leading companies in the reverse factoring market are focusing on developing advanced solutions, such as digital supply chain finance platforms, to improve liquidity and lower financing costs for small and medium-sized enterprises (SMEs). A digital supply chain finance platform integrates trade finance systems with specialized fintech technology to streamline financing processes, enable earlier invoice payments, enhance operational efficiency, and support seamless stakeholder integration. For example, in July 2025, The Housing Bank for Trade and Finance, a US-based financial institution, launched Jordan’s first supply chain finance program for reverse factoring, integrating its trade finance system with CreditPlus, the country’s first digital platform dedicated to supply chain finance. The program provides a range of digital trade finance solutions, including invoice financing and reverse factoring, helping SMEs improve liquidity, accelerate growth, and increase competitiveness by allowing suppliers to receive payments earlier at lower costs based on confirmed transactions and buyer credit standing, without traditional guarantees or credit limits. The platform also facilitates the digitization of financial and commercial operations for SME suppliers, enhancing operational efficiency, improving invoice management, and reducing operational risks.

In February 2025, Fidelity National Information Services Inc., a US-based technology company, acquired Demica for an undisclosed amount. Through this acquisition, FIS aims to enhance its reverse factoring and receivables finance offerings by integrating Demica’s cloud-based supply chain finance platform, enabling banks and corporates to optimize working capital and streamline payables finance programs. Demica Limited is a UK-based provider of supply chain finance and reverse factoring technology platforms, offering solutions for payables finance, receivables finance, and securitization.

Major companies operating in the reverse factoring market are ICBC China Limited, JPMorgan Chase & Co., Bank of America Corporation, Banco Santander S.A., HSBC Holdings plc, Citigroup Inc., Wells Fargo & Company, Banco do Brasil S.A., ING Groep N.V., Barclays plc, Societe Generale SA, Banco Bilbao Vizcaya Argentaria S.A., Deutsche Bank AG, Sumitomo Mitsui Banking Corporation, UniCredit S.p.A., Mizuho Financial Group Inc., Standard Chartered PLC, KBC Group NV, CaixaBank S.A., Accion International, PrimeRevenue Inc., Drip Capital Inc., Viva Capital Funding LLC, eFactor Network S.A.P.I. de C.V., Tradewind GmbH.

Europe was the largest region in the reverse factoring market in 2025. The regions covered in the reverse factoring market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the reverse factoring market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The reverse factoring market includes revenues earned by entities by providing services such as discount fees, additional service fees, and volume-based fees. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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