Accounts Receivable Financing Market Report 2025

The accounts receivable financing market size has grown rapidly in recent years. It will grow from $147.16 billion in 2024 to $164.06 billion in 2025 at a compound annual growth rate (CAGR) of 11.5%. The growth during the historic period was driven by an increasing need for liquidity management, expanding globalization of trade, rising focus on enhancing cash flow efficiency, growing awareness of the benefits of financial flexibility, and greater adoption of digital platforms for invoice financing.

The accounts receivable financing market size is expected to see rapid growth in the next few years. It will grow to $250.28 billion in 2029 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period is expected to be driven by increasing demand for real-time credit analytics, the growing adoption of embedded finance solutions, rising regulatory support for alternative lending, greater focus on sustainability-linked financing, and expanding use of API-driven lending ecosystems. Key trends during this period include advancements in invoice digitization and automation, innovations in real-time credit decisioning tools, integration of receivables platforms with enterprise resource planning (ERP) systems, development of multi-funder financing ecosystems, and the use of blockchain for invoice verification.

The rise in entrepreneurial activities is expected to drive growth in the accounts receivable financing market. Entrepreneurial activities, which include identifying business opportunities, taking risks, and organizing resources to launch new ventures, are increasing due to digital technologies that lower entry barriers and provide access to global markets and essential tools at minimal cost. Accounts receivable financing supports entrepreneurs by converting unpaid invoices into immediate cash flow, enabling operational continuity and business expansion without relying on traditional loans. For instance, in Q1 2025, the UK’s Inter-Departmental Business Register reported 89,515 new businesses, a 2.8% increase over Q1 2024, with notable growth in 12 of the 16 main industrial groups, especially retail.

Companies are enhancing access to working capital through innovative digital solutions. Receivables finance platforms streamline funding by enabling businesses to sell or borrow against outstanding invoices via automated processes. For example, in December 2022, Kyriba Corp. launched Kyriba Receivables Finance, allowing CFOs and treasurers to instantly convert receivables into cash, automate financing workflows, manage credit risk, and track KPIs such as days sales outstanding and utilization limits, integrating seamlessly with broader liquidity management tools to improve financial resilience.

In January 2022, eCapital Corp. acquired the accounts receivable financing portfolio of UMB Bank to strengthen its Midwest presence and fintech capabilities. The acquisition allowed eCapital to transition UMB clients to its advanced technology platform, enhancing service delivery and solidifying its position as a leading alternative financing provider in North America and the UK.

Major players in the accounts receivable financing market are Bibby Financial Services Limited, eCapital Corporation, Lendio Corporation, Triumph Business Capital LLC, Taulia Inc., JD Factors Ltd., Drip Capital, Riviera Finance LLC, PrimeRevenue Inc., 1West Capital Partners LLC, Fundera Inc., Accord Financial LLC, Porter Capital Corporation, Breakout Capital Finance Inc., ExpoCredit Trade Services Pvt. Ltd., KredX Technologies Private Limited, Capital Plus Financial LLC, Commercial Funding Inc., FundThrough Inc., State Financial Services LLC, 1st Commercial Credit Inc., Universal Funding Corporation.

North America was the largest region in the accounts receivable financing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in accounts receivable financing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the accounts receivable financing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Accounts receivable financing is a financial strategy in which a business obtains immediate funds by using its outstanding customer invoices as collateral. This allows the company to access working capital without waiting for standard payment terms to complete. The approach supports improved cash flow, day-to-day operations, and coverage of short-term liabilities, including payroll, inventory purchases, and other operational expenses.

The main types of accounts receivable financing include accounts receivable collateral financing, accounts receivable factoring, and accounts receivable securitization. Accounts receivable collateral financing is a method where companies leverage outstanding invoices as collateral to secure short-term loans. Funding sources include banks, private investors, alternative lenders, and peer-to-peer lending platforms. This solution is adopted by enterprises of various sizes, from small and medium enterprises (SMEs) to large organizations, and serves end users across industries such as manufacturing, healthcare, retail, information technology and telecommunications, transportation and logistics, and others.

The accounts receivable financing market research report is one of a series of new reports that provides accounts receivable financing market statistics, including accounts receivable financing industry global market size, regional shares, competitors with an accounts receivable financing market share, detailed accounts receivable financing market segments, market trends and opportunities, and any further data you may need to thrive in the accounts receivable financing industry. This accounts receivable financing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The accounts receivable financing market includes revenues earned by entities by providing services, such as custom financing structuring, credit risk assessment, invoice factoring, invoice discounting, and asset-based lending. 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.

This product will be delivered within 3-5 business days.