WFY’26: Brazil’s factoring market jumps 22.5% to BRL245bn

Brazil’s receivables finance market expanded sharply in 2025 despite a difficult economic backdrop of high interest rates, tighter credit conditions and rising corporate distress. In this country report, João Costa Pereira, Head of Trade Finance at Ouribank S.A. Banco Múltiplo, examines how factoring, securitisation companies and receivables investment funds are supporting businesses as conventional borrowing becomes more expensive.

The article included in the World Factoring Yearbook 2026 (WFY’26) explores a market where factoring-related volumes represented by ANFAC rose 22.5% to BRL245bn in 2025. It also examines Brazil’s distinctive use of duplicatas and FIDCs, the growing role of receivables finance for underserved SMEs, and the development of a registry-based electronic receivables infrastructure designed to strengthen ownership, lien control and protection against double financing.

Below is an excerpt from his article.

This difficult environment favours the various forms of finance based on receivables. The Brazilian factoring association, ANFAC, reported that the factoring industry grew by 22.5 per cent, reaching BRL 245bn. This includes the different forms of receivables finance represented by ANFAC and which are defined as: factoring related products provided by factors (BRL 80bn +6.7 per cent); securitisation companies (BRL 65bn +44.4 per cent), and receivables investment funds (FIDCs) (BRL 100bn +25 per cent). Most of these factors and FIDCs are small companies providing much needed credit lines to SMEs and which cover remote areas of the Brazilian territory not served by the banking system.

Invoicing and, consequently, domestic factoring in Brazil is unique when compared to that of other countries, due to methods of payment utilised between corporates in the domestic market. As a standard, the invoice form in use is an electronic fiscal document NF-e (Nota Fiscal Electronica) issued with a credit instrument (the “duplicata”) and a Bank Payment Instruction (the boleto). The duplicata can be easily transferred by endorsement or assignment and paid by the buyer at any bank using the boleto. The duplicata is subject to protest after due date and penalty interest.

The electronic duplicata (duplicata escritural) is Brazil’s fully digital trade receivable instrument, created under Law 13,775/2018 and regulated by the Central Bank. It replaces a paper-based instrument with a registered, traceable, and unique electronic asset, recorded by authorised registries and integrated with the fiscal e-invoicing (NF-e). By ensuring clear ownership, lien control, and preventing double financing, it significantly strengthens receivables as collateral.

Its main impact is structural: it increases trust, reduces fraud and legal uncertainty, and enables broader participation from banks, funds, and fintechs. Over time, this is expected to expand credit access, improve liquidity, and lower funding costs, particularly for SMEs and supply chain finance programs.

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