In this article, we will look into the 20 biggest factoring companies in the US. If you want to skip our detailed analysis you can go directly to the 5 Biggest Factoring Companies in the US.
Factoring Services: A Market Analysis
Factoring services refer to collecting receivables and maintaining sales ledgers, credit control, and credit protection. Factoring services offer comprehensive solutions to businesses to manage their accounts receivable and provide financing security for businesses. According to a report by Grand View Research, the global factoring services market was worth $3.56 trillion in 2022. The market is expected to grow at a CAGR of 9.2% and reach $7.00 trillion in 2030. The growth can be attributed to the growing need for alternative financing sources for micro and small & medium enterprises. Technological innovations including machine learning, natural language processing, and AI are expected to generate substantial growth prospects for the industry over the forecasted period.
With the growing demand for automation in financial services, financial institutions are working towards simplifying their operations to optimize the credit collection process, by making it less time-consuming and more efficient. Financial companies are integrating technologies with account receivable solutions. Digital documentation is another significant market trend in the industry. It is contributing to the expansion of the market with cloud-based and AI-integrated models, increasing public awareness, and cryptocurrency adoption. However, with the increased tech solutions, the risk of cyber threats also increases.
Segment-wise, the market is dominated by the domestic segment which accounted for over 70% of the market share in 2022. The growth is driven by the increasing adoption of factoring receivables techniques across various sectors and the rising use of electronic invoices. Type-wise, recourse factoring held the largest share in 2022, which is expected to increase further and reach over 52% by 2030. This segment provides advantages such as lower fees and flexible advance rates to businesses with creditworthy clients. Within the financial institutes segment, banks held the largest share, accounting for over 80% in 2022.
The manufacturing segment is the biggest client of factoring services with a market share of over 30%. The growth is characterized by early-pay discounts, bulk order incentives, and improved cash flow during seasonal fluctuations. The healthcare segment is projected to grow at a CAGR of 10.9%, driven by the benefits of faster payment for medical insurance claims and the adoption of factoring services in various healthcare businesses.
Major Players in the Market
Some of the major players in the factoring services market include American Express Company (NYSE:AXP), Intuit Inc. (NASDAQ:INTU), First Citizens BancShares, Inc. (NASDAQ:FCNCA), and Triumph Financial, Inc. (NASDAQ:TFIN).
American Express Company (NYSE:AXP) is a leading American bank holding and financial services company, offering services including charge and credit cards, business services, factoring services, and insurance. On November 28, American Express Company (NYSE:AXP) announced its partnership with a leading Australian healthcare claiming solution, HICAPS. The collaboration will facilitate the patients' payments through HICAPS, featuring quick claim processing and reduced administration burden. By the end of 2024, 90,000 Australian healthcare providers will be able to accept American Express.
Intuit Inc. (NASDAQ:INTU) is a leading business software company. Its accounting software platform, Quickbooks, offers QuickBooks Cash-Based Accounting System to record sales transactions and utilize factoring to convert open invoices into real cash. On November 14, Intuit Inc. (NASDAQ:INTU) announced that it had partnered with Allstate Health Solutions to provide a comprehensive employee benefits platform for QuickBooks Online Payroll customers. The platform will have a wide range of features including insurance options, supplemental and voluntary benefits, a dedicated call center for support, and integration with QuickBooks Payroll.
First Citizens BancShares, Inc.'s (NASDAQ:FCNCA) subsidiary, CIT Group offers financing services including factoring, cash management, treasury management, and mortgage loans among others. On December 5, First Citizens BancShares, Inc. (NASDAQ:FCNCA) enabled a $75 million revolving credit facility for a premium natural pet food company, Stella & Chewy's. This credit facility will help Stella & Chewy to meet the growing demand for its product and expand its business objectives.
Triumph Financial, Inc. (NASDAQ:TFIN) is a leading company in the market, specializing in invoice factoring for trucking and freight companies under its factoring division. On October 31, Triumph Financial, Inc. (NASDAQ:TFIN) announced the addition of Coyote Logistics to its open payment networks. The partnership will simplify payment processes for Coyote Logistics by providing fast and more reliable payments. This collaboration is a substantial step towards improving the logistics industry through innovation and advanced payment solutions.
Now, that we have discussed the factoring services market and talked about major players. Let's take a look at the 20 biggest factoring companies in the US.
20 Biggest Factoring Companies in the US
20 Biggest Factoring Companies in the US
Methodology
To compile our list of the 20 biggest factoring companies in the US, we sifted through multiple market reports including, Grand View Research, Technavio, The Brainy Insights, The Business Research Company, and Advance Market Analytics. We then collated a list of 25 US-based companies offering factoring services. We then sourced market caps of public companies from Yahoo Finance and the estimated annual revenue for private companies from Zoom Info. We narrowed down our list to the top 20 biggest companies by either market cap or estimated annual revenue. We have ranked the 20 biggest factoring companies in the US in ascending order of market capitalizations, as of December 7, 2023, and estimated annual revenue.
20 Biggest Factoring Companies in the US
20. Breakout Capital, LLC
Estimated Annual Revenue: $6.70 million
Breakout Capial, LLC is a financial services company, specializing in alternative financing, including invoice factoring, working capital term loans, asset-based loans, and purchase order financing. It is ranked 20th on our list.
19. Charter Capital Holdings LP
Estimated Annual Revenue: $12.90 million
Charter Capital Holdings LP is a leading invoice factoring services company, headquartered in Texas. The company offers factoring services for small and mid-sized businesses experiencing cash flow problems. Charter Capital Holdings LP is ranked 19th with an estimated annual revenue of $12.9 million.
18. CapitalPlus Financial Services
Estimated Annual Revenue: $15.00 million
CapitalPlus Financial Services is ranked 18th on our list of the 20 biggest factoring companies in the US, with an estimated annual revenue of $15 million. CapitalPlus Financial Services provides factoring services to construction companies.
17. American Receivable
Estimated Annual Revenue: $15.00 million
American Receivable is a leading factoring services company, headquartered in Texas. The company offers invoice factoring, cash flow management, and other financing services. It is ranked 17th on our list with an estimated annual revenue of $15 million.
16. New Century Financial
Estimated Annual Revenue: $16.50 million
New Century Financial is ranked 16th on our list with an estimated annual revenue of $16.50 million. New Century Financial is a leading factoring services company, providing services to multiple industries including manufacturing, oil and gas, staffing, IT, and transportation industry.
15. Porter Capital Corporation
Estimated Annual Revenue:: $19.10 million
Porter Capital Corporation is a financial services corporation, specializing in invoice factoring and flexible accounts receivable financing solutions. Porter Capital Corporation is ranked 15th on our list with an estimated annual revenue of $19.10 million.
14. TCI Business Capital
Estimated Annual Revenue: $27.00 million
TCI Business Capital is one of the biggest factoring companies in the US, providing steady cash flow through factoring and accounts-receivable financing to companies. It is ranked 14th on our list with an estimated annual revenue of $27 million.
13. Thunder Funding
Estimated Annual Revenue: $31.40 million
Thunder Funding is a financial services company in the US, specializing in freight factoring services to businesses. It is ranked 13th on our list with an annual estimated revenue of $31.40 million.
12. Premium Merchant Funding One, LLC
Estimated Annual Revenue: $47.00 million
Premium Merchant Funding One, LLC is a leading financial services company, specializing in merchant cash advance, factoring, payroll, and other financing services. The company provides invoice factoring services to small businesses. It is ranked 12th on our list.
11. Riviera Finance
Estimated Annual Revenue: $49.70 million
Riveria Finance is a top invoice factoring company with more than 20 offices in the US and Canada. It is ranked 11th on our list with an estimated annual revenue of $49.70 million.
10. RTS Financial Services
Estimated Annual Revenue: $252.80 million
RTS Financial Services is a factoring company, headquartered in Overland Park, Kansas. It provides working capital solutions to a range of businesses, with a prime focus on trucking companies. It is ranked 10th on our list.
9. Southern BancShares (N.C.), Inc. (OTC:SBNC)
Market Cap as of December 7: $389.02 million
Southern BancShares (N.C.), Inc. (OTC:SBNC) is a leading financial services company. Southern BancShares (N.C.), Inc.'s (OTC:SBNC) accounts receivable financing platform provides a range of services including factoring, A/R financing, and asset-based lending. As of December 7, Southern BancShares (N.C.), Inc. (OTC:SBNC) boasts a market cap of $389.02 million.
8. eCapital Corp.
Estimated Annual Revenue: $412.40 million
eCapital Corp. is a leading invoice and freight factoring company, headquartered in Miami. The alternate financing and factoring company has helped over 20,000 companies to expand their businesses. It is ranked 8th on our list with an estimated annual revenue of $412.40 million.
7. Triumph Financial, Inc. (NASDAQ:TFIN)
Market Cap as of December 7: $1.76 billion
Triumph Financial, Inc. (NASDAQ:TFIN) is a financial services company, specializing in invoice factoring for trucking and freight companies. As of December 7, Triumph Financial, Inc. (NASDAQ:TFIN) boasts a market cap of $1.76 billion.
6. CIT Group, First Citizens BancShares, Inc. (NASDAQ:FCNCA)
Market Cap as of December 7: $20.37 billion
First Citizens BancShares, Inc.'s (NASDAQ:FCNCA) subsidiary, CIT Group, is a leading factoring and cash management solutions company. As of December 7, First Citizens BancShares, Inc. (NASDAQ:FCNCA) reports a market cap of $20.37.