The analysis of survey data conducted for this report covers 16 factors representing about 90% of the US market on a dollar
basis, but only about 2% of the total count of firms offering factoring. Our sources for characterizing the market include
the CFA’s annual factoring survey conducted by Westat, the Study survey, the FCI annual report, analysis of reported NAICS
codes and other data sources.
The US factoring market is fragmented not only by the large number
of US firms that offer factoring, but also by factoring’s usage among
tens of thousands of small and medium enterprises.
Segmenting the market by size
Understanding the US factoring market
requires a good appreciation for how
a majority of the market is dominated
by several leading firms competing
with hundreds of smaller firms to reach
micro, small and medium-sized businesses spread throughout the country.
The Study subdivided the estimate of
the total number of US factors into three
categories below by total annual factoring volume: greater than $5 billion, $1
billion–$5 billion and less than $1 billion.
By the numbers, factoring is largely
a business pursued by non-depository
institutions. A typical factored volume
per client by large factors exceeds $10
million annually. Large factors’ scale
gives them modest pricing advantages
over smaller factors.
“There is a need for alternative sources of financing for smaller
players. With the rise in consumer confidence and a favorable
economy, you’re seeing a lot of demand from these businesses.”
- Factoring survey participant