Factoring Volume Rises as Industry Outlook Strengthens, SFNet Mid-Year Survey Finds

Large-Volume Factors Report 26.3% Year-Over-Year Growth as Working-Capital Demand Remains Strong

NEW YORK--(BUSINESS WIRE)--As businesses navigate ongoing cost pressures and shifting working-capital needs, new data from the Secured Finance Network (SFNet) points to growing momentum in factoring. SFNet’s 2026 mid-year factoring survey found that factoring volume increased during the first half of the year, while factors reported a more positive outlook for the industry.

The U.S. economy grew at a 1.5% annualized rate in the second quarter, but underlying economic activity remained solid. Consumer spending and business investment continued to support growth, while inflation and elevated interest rates remained key challenges for businesses.

Against this backdrop, the factoring sector remains healthy and optimistic. Factoring volume increased among both large- and small-volume factors from H1 2025 to H1 2026. Large-volume factors reported a 26.3% increase in total volume, while small-volume factors reported a 6.1% increase. Demand for factoring remains strong as higher costs and interest rates contribute to businesses’ working-capital needs.

“Businesses continue to navigate higher costs, elevated interest rates and an uncertain economic environment, all of which can create more complex working-capital needs,” said Rich Gumbrecht, CEO of SFNet. “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.”

The combined factoring sentiment score rose five points from H2 2025 to H1 2026, reaching 66 and signaling an optimistic industry outlook. Portfolio performance was the strongest component of the index, with more than three-quarters of factors expecting improvement.

Total funds in use also increased from H2 2025 to H1 2026, rising 5.3% among large-volume factors and 31.7% among small-volume factors. Average days sales outstanding declined by 1.3 days to 44.0.

Highlights from the quarterly and annual data reports are available at SFNet.com.

About Secured Finance Network

Founded in 1944, the Secured Finance Network is an international trade association connecting the interests of companies and professionals who deliver and enable secured financing to businesses. With more than 1,000 member organizations throughout the US, Europe, Canada and around the world, SFNet brings together the people, data, knowledge, tools and insights that put capital to work. For more information, please visit SFNet.com.