The global factoring market is expected to reach $9.2 trillion by 2025. The invoice discounting, factoring, or trade financing market in India is a size of about $6 billion (0.2% of the country’s GDP). Factoring credit accounts for a mere 2.6% of the overall formal credit given to MSMEs. A small number of players, seemingly high interest rates, and tedious documentation processes have hampered the fast growth of factoring in India. |
