WFY’26: US factoring jumps 16.6% to US$139.2bn

The US factoring market entered 2026 from a position of resilience, with reported volumes rising strongly despite slower economic growth, persistent inflation and continued caution across parts of the credit market. In this country report, Chenyue Mao, Managing Director at Wells Fargo Bank, N.A. and Chair of FCI, examines the performance of one of the world’s largest commercial finance markets and the forces reshaping receivables finance across the US.

The article included in the World Factoring Yearbook 2026 (WFY’26) highlights SFNet survey data showing factoring volume among consistently reporting respondents increasing 16.6 per cent year on year, with total reported volume reaching US$139.2bn in 2025. It also examines the dominance of non-recourse factoring, increasing digitalisation and the growing importance of state-level commercial finance disclosure requirements.

Below is an excerpt from her article.

The United States (US) factoring market entered 2026 from a position of resilience. Despite a more complex macroeconomic environment, including slower growth in the second half of 2025, persistent inflationary pressure and continued caution in parts of the credit market, receivables finance remained an important source of working capital for businesses. For factors reporting consistently across periods in SFNet’s 2025 Year-End Factoring Industry Survey, total factoring volume increased from USD 119.4bn in 2024 to USD 139.2bn in 2025, while the US domestic component increased from USD 114.4bn to USD 133.4bn. SFNet also reported that factoring volume rose 16.6 per cent year-on-year among common respondents, with total funds in use increasing by 4.1 per cent and average days sales outstanding (DSO) at 46.8.

Product structures also show the maturity of the market. In H2 2025, SFNet reported that non-recourse factoring accounted for 86.8 per cent of factoring volume among respondents, while full recourse represented 13.2 per cent and partial recourse was reported at 0.0 per cent. Notification and non-notification structures were almost evenly split, with notification factoring at 51.3 per cent and non-notification factoring at 48.7 per cent. This balance reflects the ability of U.S. providers to structure facilities around client needs, debtor relationships, operational controls and risk appetite.

Technology will continue to influence market development. E-invoicing, API connectivity, automated collateral monitoring, fraud analytics and real-time data validation are expected to improve operational efficiency and risk control. At the same time, state-level commercial finance disclosure laws will require continued attention. The most successful providers will be those able to maintain the commercial advantages of true sale factoring while adapting to a more disclosure-focused regulatory environment.

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To read the whole article and 50 other specialist articles and country market reviews, order World Factoring Yearbook 2026 here.