FCI: Global factoring industry sees 3.6% growth in 2023, returns to pre-pandemic stability - Trade Finance Global

FCI: Global factoring industry sees 3.6% growth in 2023, returns to pre-pandemic stability

By Brian Canup

Brian Canup is a former Editorial & Research Assistant at Trade Finance Global (TFG). He graduated with an MA in International Political Economy from King's College London, and a BA in Political Science from the University of Wisconsin-Madison.

Last updated on 21 May 2024

21 May 2024 3 min reading time

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In 2023, the World Factoring industry exhibited robust resilience and growth, with a 3.6% increase in volume compared to 2022. This follows two consecutive years of double-digit growth, bringing the total volume to €3,791 billion, up from €3,659 billion the previous year. Although the growth rate has stabilised compared to recent years’ volatility, it reflects a return to pre-pandemic stability.

Over the past two decades, factoring has shown remarkable strength, with a compounded annual growth rate of 8.3%. Both domestic and international factoring have grown substantially, supporting SMEs and corporates by providing liquidity, protecting against customer bankruptcies, and offering global collection support.

Europe

Europe remains the largest contributor, accounting for approximately 68% of the global volume with €2,555 billion, showing an overall increase of 2.3%. Key markets include:

France (+1.2%)
United Kingdom (+2.7%)
Germany (+3.1%)
Italy (+0.9%)
Spain (+5%)

Exceptional growth was noted in:

Hungary (+14.7%)
North Macedonia (+52%)
Romania (+10.4%)
Serbia (+24.3%)
Slovenia (+14.2%)
Turkey (+10.6%)

Some markets experienced declines, including:

Armenia (-42.1%)
Denmark (-23.6%)
Georgia (-26.3%)
Latvia (-12.8%)
Moldova (-60%)
Norway (-15.3%)

Asia Pacific

The region represents 25% of global volume with €942 billion, marking a 6.9% increase. The Greater China region showed mixed results:

Mainland China (+10%)
Hong Kong (-20.2%)
Taiwan (-14%)

Japan rebounded with a 5.8% increase to €60 billion, while India grew by 10.2% to €17.3 billion. Singapore posted the highest regional increase at 36.4%, reaching €60 billion.

Americas

The Americas saw a 4.1% increase, representing 6% of the global volume at €237 billion. South and Central America, with a 3% share at €144 billion, grew by 16.4%. Leading markets include:

Chile (+2.4%)
Brazil (+16%)
Mexico (+3.9%)

North America, representing nearly 3% of the market at €92.8 billion, experienced a decline of 10.7%.

Africa

Africa accounts for 1.2% of the global volume at €47 billion, with a growth rate of 13.5%. South Africa, the dominant market, saw a 14% increase, reflecting the continent’s strong growth trajectory.

Middle East

The Middle East, with 0.3% of the global volume, remained flat, largely due to data collection challenges.

Despite a challenging global environment, the 2023 FCI market survey highlights the strength and resilience of the factoring and receivables finance industry. The return to a more stable growth rate demonstrates the industry’s crucial role in financing the real trade economy. FCI extends its gratitude to all members and partners for their contributions in accurately reporting these impactful figures.

“This year’s data reaffirms the vital role of factoring and open account finance in supporting global trade, providing stability, and fostering economic growth across diverse regions.”, stated Neal Harm, “As we look forward to the future, the industry’s proven adaptability and robust performance continue to pave the way for sustained success.”