Reverse Factoring Market Exhibiting At A CAGR Of 11.4% From 2023 To 2030Posted by Neha Bora on August 10th, 2023 San Francisco, 10 Aug 2023: The Report Reverse Factoring Market Size, Share & Trends Analysis Report By Category (Domestic, International), By Financial Institution (Banks, Non-banking Financial Institutions), By End-use, By Region, And Segment Forecasts, 2023 - 2030 The global reverse factoring market size is estimated to reach USD 1,179.32 billion by 2030, growing at a CAGR of 11.4% from 2023 to 2030, according to the recent reports of Grand View Research, Inc. The reverse factoring or supply chain financing (SCF) market’s growth can be attributed to the growing need for alternative financing solutions in Micro, Small & Medium Enterprises (MSMEs) to improve their cash flow. Further, reverse factoring, or SCF, offers various benefits, such as developing long-term relationships between suppliers & buyers, improved balance sheet efficiency, and smoother cash flow, supporting the growth of the supply chain financing market. The COVID-19 pandemic affected the overall reverse factoring industry due to disruptions in business operations and supply chains. However, from early 2021 with ease in lockdown, the end-use companies preferred reverse factoring into their business models to accelerate product development and production and gain a competitive edge over their rivals. The MEMSs are facing various challenges in raising their working capital owing to the limited availability of adequate financing solutions. To overcome this challenge, MSMEs have shifted their focus towards factoring and reverse factoring solutions to streamline their cash flows, which is anticipated to support the reverse factoring industry’s growth globally. Various countries' governments, such as India, Canada, and Japan, are taking supportive initiatives to assist MSMSs in raising working capital and supporting market growth. For instance, in January 2021, the Reserve Bank of India (RBI) allowed non-deposit-taking NBFC and Investment Credit Companies (ICCs) with assets of around USD 130 million and above to provide various factoring services, including SCF and bill discount facilities to MSMEs. It helped MSMEs get immediate liquidity instead of waiting for bills to be honored by customers. The increasing demand for reverse factoring solutions globally is encouraging market players to adopt various business opportunities, supporting the growth of the industry. For instance, in December 2022, eFactor Network and Trafigura Pte. Ltd., a company operating in the commodities industry, announced that they are collaborating with several financial institutions and piloting a Sustainable Supply Chain Finance program for mining companies based in Mexico. The program envisaged strengthening mining companies' working capital while encouraging responsible sourcing practices throughout the value chain. The program particularly envisaged leveraging eFactor Network's digital factoring platform to provide Trafigura Pte. Ltd.'s suppliers of metal concentrates with accelerated payments for products. Access Research Report of Reverse Factoring Market @ https://www.grandviewresearch.com/industry-analysis/reverse-factoring-market-report Reverse Factoring Market Report Highlights
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