Invoice Finance News – According to several invoice finance market intelligence sources the global invoice factoring market is projected to experience significant year on year growth in the coming years with the global invoice finance market currently valued $2 trillion, set to reach a market valuation of $6 trillion by 2032.
One of the key highlights of the invoice factoring market is the Asia-Pacific region, which is expected to experience the highest compound annual growth rate (CAGR) of 11.37% throughout the forecast period. This growth can be attributed to the expanding manufacturing sectors in countries such as India and other Southeast Asian nations.
As in the UK, it is also worth noting that small and medium-sized firms (SMEs), which make up over half of all businesses in the Asia-Pacific region, often seek invoice finance to ensure the smooth functioning of their operations to support their growth.
So whilst the UK invoice finance market saw a steep decline during covid, with government finance options such as the Bounce Back Loan being very favourable, post covid, the UK invoice finance market is also set to see significant growth in support of the 2032 global industry valuation of $6 trillion.
That the global invoice factoring market is poised for significant growth is key to feeling much needed economic growth in a post covid protectionist environment, given that the global banks have become even more risk averse.
Much of the global invoice factoring market growth is therefore expected to be fulfilled by non-banking financial institutions who in turn are expected to register the highest CAGR of 10.99% in the invoice factoring market during the projected period.
This growth can be attributed to the flexibility and transparency offered by non-banking financial institutions to their customers.
The drivers for the global invoice factoring market growth are thought to include increased manufacturing in the Asia-Pacific region and the wider adoption of advanced technologies such as artificial intelligence, machine learning and natural language processing which will enable closer co-operation between global markets.
