Factoring volumes rise as industry outlook strengthens

Factoring volumes increased across both large and small providers during the first half of 2026, while industry sentiment also improved, according to the latest Secured Finance Network (SFNet) survey.

SFNet’s 2026 mid-year factoring survey found that large-volume factors recorded a 26.3% increase in total volume compared with the first half of 2025, while volumes among small providers rose by 6.1%.

The organisation said demand for factoring remained strong as businesses continued to manage higher costs, elevated interest rates and changing working-capital requirements.

“Factoring provides businesses with a flexible source of liquidity to help manage those pressures, and the growth we’re seeing across the industry underscores the important role it continues to play in supporting businesses.”

Factoring sentiment improves

The combined factoring sentiment score increased five points compared with the second half of 2025 to reach 66, indicating a more positive outlook among respondents.

Portfolio performance was the strongest component of the sentiment index, with more than three-quarters of factors expecting conditions to improve.

Funds in use also increased during the period. Large-volume factors reported a 5.3% rise between the second half of 2025 and first half of 2026, while small-volume factors recorded an increase of 31.7%.

Average days sales outstanding declined by 1.3 days to 44 days.

The growth comes against a mixed economic backdrop in the US, with businesses continuing to face inflation and elevated interest rates alongside ongoing consumer spending and business investment.

SFNet said the results point to continued demand for factoring as companies seek liquidity to manage working-capital pressures.