WFY’26: Singapore’s factoring market reaches €69.6bn as international business drives 62% of volume

Singapore’s factoring market continued to expand in 2025, with total volume reaching almost €70bn and factoring penetration rising to 13% of GDP. In this country report, Alan Wang, Executive Director at Hubble Financial Services Pte Ltd, examines how stretched payment terms, SME liquidity pressures and Singapore’s strong digital infrastructure are pushing receivables finance further into the mainstream.

The article included in the World Factoring Yearbook 2026 (WFY’26) explores a market where international factoring represents more than 60% of total volume, while fintech lenders, API integrations and AI-driven underwriting are changing how businesses access working capital. It also considers the growing use of embedded finance, digital invoice financing and Singapore’s role as a regional hub for cross-border receivables finance.

Below is an excerpt from his article.

For business owners in Singapore today, the predominant concerns causing operational anxiety are managing escalating business costs and ensuring sufficient liquidity. As global uncertainties loom and payment terms stretch, factoring has stepped out of the shadows of traditional banking loans to become a crucial lifeline for many businesses. According to the latest figures by Factors Chain International (FCI), Singapore’s total factoring volume has further increased to EUR 70bn, making up 13 per cent of the country’s GDP.

With a factoring-to-GDP ratio now reflecting respectable market penetration, the industry is no longer viewed merely as a ‘lender of last resort’ only for the distressed firms. Instead, supported by robust digital and technological infrastructure, and continual risk sharing initiatives by Enterprise Singapore, factoring is now a strategic and powerful instrument to drive the city-state’s trade. As we move deeper into 2026 and beyond, the Singapore market is characterised by seamless API integrations, technology and AI driven factoring underwriting and onboarding, that concertedly push toward a sustainable supply chain finance.

Singapore’s EUR 69.56bn factoring market is a tale of two distinct halves: a domestic foundation and an international footprint. Based on FCI data, domestic factoring accounts for 38.36 per cent of the total factoring volume with EUR 26.69bn, while international factoring represents 61.63 per cent with EUR 42.87bn.