Latin America Factoring Services Market Overview
The Latin America factoring services market is expected to see significant growth in the coming years. The increasing adoption of factoring services by small and medium-sized enterprises (SMEs) in the region is a key factor driving this growth. Factoring allows SMEs to improve their cash flow by selling their accounts receivable at a discount to a third-party financial institution, which then assumes responsibility for collecting on those receivables.
The Latin America factoring services market size was valued at USD 145.48 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 11.9% from 2023 to 2030.
Brazil is currently the largest market for factoring services in Latin America, accounting for over 50% of the total market share. However, other countries such as Mexico and Colombia are also seeing an increase in demand for these services due to government initiatives aimed at supporting SMEs and promoting entrepreneurship. Additionally, technological advancements are making it easier for companies to access factoring services online, further driving growth in the industry.
Despite these positive trends, there are also challenges facing the Latin America factoring services market. One major challenge is the lack of regulatory frameworks governing the industry in some countries. This can lead to issues with fraud and transparency that can undermine investor confidence and hinder growth. As such, regulators will need to work closely with industry stakeholders to establish clear guidelines that promote responsible lending practices while ensuring consumer protection.
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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
Market Dynamics
1. Drivers

An increasing number of SMEs in the region
Favorable government policies and regulations
Growing demand for working capital financing
Increasing adoption of factoring by businesses

2. Restraints

Lack of awareness and understanding of factoring services
Limited availability of funding for factoring companies
Competition from traditional banking institutions

3. Opportunities

Expansion into new industries and markets
Growing demand for supply chain financing
Increasing adoption of technology and automation in the factoring industry

4. Challenges

Limited availability of credit insurance for factoring companies
Complex regulatory environment in some countries
Economic instability in some countries

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)



Report Scope



Report Attribute
Details


Forecast Years:
2023-2033


Historical Years:
2017-2022


Revenue 2023:
USD 145.48 Bn


Revenue 2033:
USD 435.4 bn


Revenue CAGR (2023 – 2033):
11.9%


Fastest Growing Region
United States


Largest Region
China


Report Scope
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast 2023-2033;

Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling


Regional Coverage & Country Coverage
5 Regions & Top 22 Countries


North America – (U.S., Canada, Mexico)
Europe – (U.K., France, Germany, Italy, Spain, Rest Of Europe)
Asia Pacific – (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
Latin America – (Brazil, Argentina, Rest Of Latin America)
Middle East & Africa – (GCC Countries, South Africa, Rest Of Middle East & Africa)

 


Short-Term Projection Year
2028


Long-Term Projected Year
2033



Frequently Asked Questions About This Report

What is factoring?
What is the Latin America factoring services market worth?
Which country is the largest market for factoring services in Latin America?
Which segment accounted for the largest Latin America factoring services market share?
Who are the key players in Latin America factoring services market?
What are the factors driving the Latin America factoring services market?