Procurement Market Intelligence Report
Invoice Factoring
Sourcing Guide & Market Intelligence
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Invoice Factoring Global Overview
Definition
Summary
Invoice factoring providers purchase current accounts receivable at a discount from buyers and then collect the outstanding debt. The main purpose of this service is to provide immediate liquidity for buyers that need to increase short-term cash flow. Companies of all sizes in a range of markets, including transportation, retail, staffing, construction and technology, commonly use invoice factoring. Providers are either specialized invoice factoring firms or more diversified financial services companies.
This Report Includes:
- Accounts receivable factoring
- Non-recourse factoring
Not in this Report:
- Debt collection
- Invoice discounting
Global Invoice Factoring Procurement Trends
Discover the top international trends affecting procurement in the global Invoice Factoring market.
Warning Trends
Fed lowers rates for the first time in 2025
- On September 17, the Federal Reserve’s Federal Open Market Committee (FOMC) voted to lower interest rates to a target range of 4.0% to 4.25%, down 0.25% from the rate it had been holding since November of last year.
- Despite indications at the start of the year that steady reductions to the relatively high 4.25% to 4.5% rate were on the horizon, the Fed held off on rate cuts for much of the year due to concerns that the combination of higher tariffs and a reduction in borrowing costs could cause rebounding inflation.
- The September cut to Fed interest rates signals a shift in this strategy, indicating that the Fed now considers weakening employment figures a greater threat than inflation. As a result, FOMC officials have also signaled that two additional rate cuts are likely before the end of the year in an effort to fight unemployment and stimulate the economy.
- Declining Fed funds rates will provide relief to borrowers by lowering the market interest rates for consumer and business loans. This reduction in the cost of borrowing will reduce the cost of many banking and financial services, and may spur increases in demand across the economy.
Global Invoice Factoring Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 938 |
| #2 United States | 585 |
| #3 South America | 482 |
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2
Geography Drilldown - US
Average Cost of Invoice Factoring
United States
2026 Market Pricing$0.50 to $X.XX
of invoice value per monthAverage Price
Prices in the Invoice Factoring market range from $0.50 to $X.XX, depending on Duration of Factoring Agreement, Invoice quality, Customer financial history and Level of service. For example, lower prices are associated with Short-term agreements (3.00% to 8.50% of invoice value per month) and Long term agreements (0.5% to 3.50% of invoice value per month), whereas higher prices are associated with .
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Invoice Factoring Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Invoice Factoring market, prices in the US have declined 0.0% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Invoice Factoring
Total cost of ownership is Medium in the Invoice Factoring market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs.
Billed During
Additional Fees
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.9 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Commercial Banks
- Credit Unions
- Office Supply Wholesalers
- Computer & Packaged Software Wholesalers
2nd
Tier Suppliers
- Commercial Real Estate Lessors
- Professional Employer Organizations
- Office Supply Manufacturers
- Computer Manufacturers
Biggest Invoice Factoring Suppliers in the US by Revenue
The largest Invoice Factoring vendors by revenue in the US are Wells Fargo & Company, Advance Business Capital Llc and Charter Capital Holdings LP. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Wells Fargo & Company | Global | SAN FRANCISCO, CA | >10,000 | 5-10 | ||||
| Advance Business Capital Llc | National | Coppell, TX | 101-250 | < 5 | ||||
| Charter Capital Holdings LP | Regional | Bellaire, TX | 25-50 | < 5 | ||||
| DealStruck Inc. | National | Valley Stream, NY | 101-250 | < 5 | ||||
| Factor Funding Co. | National | Houston, TX | <25 | < 5 | ||||
| Fundbox Ltd. | International | San Francisco, CA | 101-250 | < 5 | ||||
| Riviera Finance LLC | National | Houston, TX | 101-250 | < 5 | ||||
| Trade Finance Solutions | International | Aventura, FL | 51-100 | < 5 | ||||
| Universal Funding Corporation | National | Spokane, WA | 51-100 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Invoice Factoring market is 11.2% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The market’s low concentration has led to a high level of competition among providers which benefits buyers.
Moderate supply chain risk may make providers less willing to negotiate on service prices, which can detract from a buyers ability to negotiate.
Moderate vendor risk indicates that buyers may face service disruptions due to issues among vendors, such as poor financial stability.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises
Supplier Information
Wells Fargo & Company
Wells Fargo & Company is a public company operating globally in the finance and insurance and real estate and rental and leasing sectors. The company's offerings include lockbox services, rail tank car leasing services, real estate asset management & consulting services, commercial real estate brokerage services,... Subscribe to learn more
Advance Business Capital Llc
Advance Business Capital Llc is a private company operating nationally in the finance & insurance sector. The company's offerings include invoice factoring. Founded in 2004, the company is currently headquartered in Coppell, Texas, United States of America with an estimated 175 employees. Subscribe to learn more
Charter Capital Holdings LP
Charter Capital Holdings LP is a private company operating regionally in the finance & insurance sector. The company's offerings include invoice factoring. Founded in 2001, the company is currently headquartered in Bellaire, Texas, United States of America with an estimated 37 employees. Subscribe to learn more
DealStruck Inc.
DealStruck Inc. is a private company operating nationally in the finance & insurance sector. The company's offerings include invoice factoring. Founded in 2012, the company is currently headquartered in Valley Stream, New York, United States of America with an estimated 175 employees. Subscribe to learn more
Factor Funding Co.
Factor Funding Co. is a private company operating nationally in the finance & insurance sector. The company's offerings include invoice factoring. Founded in 1996, the company is currently headquartered in Houston, Texas, United States of America with an estimated 25 employees. Subscribe to learn more
Fundbox Ltd.
Fundbox Ltd. is a private company operating internationally in the finance & insurance sector. The company's offerings include invoice factoring. Founded in 2013, the company is currently headquartered in San Francisco, California, United States of America with an estimated 175 employees. Subscribe to learn more
Meta Financial Group Inc.
Meta Financial Group Inc. is a public company operating nationally in the finance and insurance sector. The company's offerings include invoice factoring. Founded in 1954, the company is currently headquartered in SIOUX FALLS, South Dakota, United States of America with an estimated 1154 employees. Subscribe to learn more
Riviera Finance LLC
Riviera Finance LLC is a private company operating nationally in the finance & insurance sector. The company's offerings include invoice factoring. Founded in 1969, the company is currently headquartered in Houston, Texas, United States of America with an estimated 175 employees. Subscribe to learn more
Trade Finance Solutions
Trade Finance Solutions is a private company operating internationally in the finance & insurance sector. The company's offerings include invoice factoring. Founded in 2006, the company is currently headquartered in Aventura, Florida, United States of America with an estimated 75 employees. Subscribe to learn more
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Procurement Management KPIs for the Invoice Factoring Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Current Ratio (Assets/Liabilities). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Timely Disbursement of Funds and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
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The time it takes for the supplier to process invoices and provide funding. The average resolution time can be used to determine a company’s ability to provide funding. |
|
| Current Ratio (Assets/Liabilities) |
|
Current assets Current liabilities |
The current ratio represents a company’s liquidity. The current ratio can be used to determine a company’s ability to pay its short-term obligations. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Experience and Expertise
How long have you been operating in the invoice factoring market?
How much experience do you have working with clients in our market or sector?
Price
What criteria do you use for calculating discount rates for different clients?
Are there any additional fees that the discount rate does not cover?
Vendor Financial Risk
What is the maximum value of accounts receivable that you will factor?
What is the average value of the accounts receivable that you purchase from clients?
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Invoice Factoring RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organizations, including size and location.
Buyers should indicate what economic sector they operate in.
Statement Of Need
Buyers should include the number and value of the invoices that the provider will need to collect.
Buyers should indicate whether they are seeking a provider for spot factoring individual invoices or a provider to sign a long-term contract for all client accounts.
Project Budget
Buyers should indicate the value of the contract, if possible.
Buyers should specify which services they expect to be included in the service agreement and which services they will pay additional fees for.
The RFP process made easy
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
