WFY’26: Colombia’s factoring market grows 13.5% to €21.9bn as penetration hits 5.5%

Colombia’s factoring market recorded its strongest performance in years in 2025, with domestic volumes rising 13.5% to €21.9bn and factoring penetration reaching 5.5% of GDP. In this country report, Maria Camila Muñoz, CEO / Founder of Exponencial Confirming S.A.S, examines how electronic invoicing, fintech competition, high borrowing costs and stronger SME adoption are reshaping one of Latin America’s more developed receivables finance markets.

The article included in the World Factoring Yearbook 2026 (WFY’26) explores the growing role of Colombia’s RADIAN electronic invoice registry, which processed around 1.8m discounted invoices in 2025, alongside an ecosystem of more than 200 banks, financial institutions and fintech platforms. It also considers how persistent payment delays, digital underwriting and regulatory development are widening access to working capital for Colombian SMEs.

Below is an excerpt from her article.

Colombia’s factoring market delivered its strongest performance in years in 2025. Total domestic factoring volume reached EUR 21.9bn, representing growth of 13.5 per cent compared to EUR 19.3bn recorded in 2024. Factoring penetration of GDP rose to 5.5 per cent, the highest level in the country’s recent history. This achievement reflects a more mature and comprehensive legal and technological framework for factoring – arguably one of the most sophisticated in Latin America.

The RADIAN electronic invoice registry processed approximately 1.8m discounted invoices in 2025, while the broader ecosystem of over 200 factoring entities (including banks, financial institutions, and fintech platforms) continues to reshape working capital access for SMEs nationwide.

Inflation remains a persistent challenge. Headline CPI (consumer price index) closed 2025 near 5.1 per cent, still well above the Banco de la República’s 3.0 per cent target, driven by food prices and core goods inflation. In response, the Central Bank maintained its policy rate at 9.5 per cent for most of the year before initiating cautious cuts in Q4 2025, reaching 9.25 per cent by December. This restrictive monetary environment has paradoxically been a tailwind for the factoring industry: as traditional credit remains expensive and restrictive, businesses of all sizes have increasingly turned to invoice discounting as a faster, collateral-light source of working capital.

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