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Invoice Factoring in the US Industry Data and Analysis
While invoice factoring companies offer a unique financial product, they've been facing major threats during the current period. Greater access to credit has enabled more consumers to use commercial banking and other forms of lending with ease. Since these institutions provide more products and greater stability, many businesses decided to receive funds from them instead of invoice factoring companies, causing revenue for the industry to plunge. The economic volatility at the onset of the period also disrupted the industry by disturbing downstream markets and reducing business sentiment. Also, rising corporate profit contributed to falling demand for the industry as businesses were in better financial standing to pay off their debt and reducing the need for industry services. Significant inflationary pressures encountered throughout the period has also discouraged corporations from using industry services because of expensive fees. Despite these challenges, elevated interest rates have made traditional financial products more expensive, so invoice factoring companies have been benefiting from higher borrowing costs. However, the interest rate cut in 2024 and the anticipation of interest rate cuts in the latter part of the current year will hinder the industry as borrowing costs will fall. Overall, industry revenue has declined at a CAGR of 4.4% to $3.0 billion over the past five years, including an expected decline of 1.9% in 2025 alone. Although industry profit has climbed and comprises 29.3% of revenue in the current year due to the higher borrowing costs experienced during the period.
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What's included in this industry analysis
IBISWorld's research coverage on the Invoice Factoring industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released September 2025.
About this industry
What's this industry report about?
The Invoice Factoring industry in the United States operates under the NAICS industry code OD5407. Invoice factoring companies specialize in short-term debt financing. Factoring involves a company selling its account receivables to a third party to access cash to finance further business activity without having to wait for its debtors to pay them. Companies generate revenue through factor fees (the difference between the price paid for the invoice and money received from debtors). Related terms covered in the Invoice Factoring industry in the United States include working capital, sales ledger and factoring.
What's included in this industry?
Products and services covered in Invoice Factoring industry in the United States include Recourse factoring, Non-recourse factoring: small enterprises and Non-recourse factoring: medium enterprises.
What companies are included in this industry?
Companies covered in the Invoice Factoring industry in the United States include Wells Fargo & Company.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Invoice Factoring industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Invoice Factoring industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Invoice Factoring industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Invoice Factoring industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Invoice Factoring industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Invoice Factoring industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Invoice Factoring industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Invoice Factoring industry in the United States.
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Frequently Asked Questions
What is the market size of the Invoice Factoring industry in the United States in 2026?
The market size of the Invoice Factoring industry in the United States is $3.0bn in 2026.
How many businesses are there in the Invoice Factoring industry in the United States in 2025?
There are 247 businesses in the Invoice Factoring industry in the United States, which has declined at a CAGR of 8.2 % between 2020 and 2025.
How may import tariffs affect the Invoice Factoring industry in the United States?
The Invoice Factoring industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Invoice Factoring industry in the United States?
The Invoice Factoring industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Invoice Factoring industry in the United States grown or declined over the past 5 years?
The market size of the Invoice Factoring industry in the United States has been declining at a CAGR of 4.4 % between 2020 and 2025.
What is the forecast growth of the Invoice Factoring industry in the United States over the next 5 years?
Over the next five years, the Invoice Factoring industry in the United States is expected to decline.
What are the biggest companies in the Invoice Factoring industry in the United States?
The biggest company operating in the Invoice Factoring industry in the United States is Wells Fargo & Company
What does the Invoice Factoring industry in the United States include?
Providing recourse factoring and Providing non-recourse factoring are part of the Invoice Factoring industry in the United States.
Which companies have the highest market share in the Invoice Factoring industry in the United States?
The company holding the most market share in the Invoice Factoring industry in the United States is Wells Fargo & Company.
How competitive is the Invoice Factoring industry in the United States?
The level of competition is moderate and increasing in the Invoice Factoring industry in the United States.
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