Find out how factoring is helping to stabilize businesses in Germany in 2025—despite economic uncertainties—with record revenue of 423.5 billion euros. All the facts, trends, and benefits for small and medium-sized businesses and the skilled trades.

Introduction: Factoring as the Standard in Corporate Finance

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Factoring is no longer a niche product, but rather an integral part of modern corporate financing. Especially in uncertain times, the sale of receivables provides liquidity, security, and the ability to act—without incurring new debt. In 2025, the industry in Germany once again demonstrated how important it is for the stability of supply and value chains. This is highlighted in particular in the press release from the German Factoring Association (DFA).

The Factoring Market in 2025: Record Figures and Trends

The German factoring industry recorded a record revenue volume of 423.5 billion euros in 2025—an increase of 6.2% compared to the previous year. Particularly noteworthy: This growth was achieved despite moderate GDP growth of just 0.2% in Germany. The factoring ratio—the share of factoring revenue in GDP—rose to 9.5%.

  • Domestic factoring: +8% to 302.9 billion euros (the main driver of growth)
  • International factoring: +1.9% to 120.5 billion euros
    • Export Factoring: Moderate Growth
    • Import Factoring: 2.8% Decline

Customers and Employment

  • In 2025, 112,000 companies used factoring services provided by the association’s members.
  • The industry employed 6,600 people—an 11% increase compared to 2024.

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The most important sectors for factoring in Germany:

  1. Retail (the strongest sector)
  2. Health Care
  3. Food Industry

In terms of factoring types, in-house factoring dominates, accounting for 65% of the market.

Why Factoring Is Especially Relevant in 2025

In an environment marked by late payments, rising insolvencies, and economic uncertainty, factoring becomes a strategic decision. Companies not only gain liquidity, but also:

Faster access to funds (e.g., €48,000 within 2 days for a €50,000 invoice)
Protection against payment defaults (del credere function)
Improved balance sheet ratios (accounts receivable are removed from the balance sheet, equity ratio increases)
Time savings through outsourced accounts receivable management

Digitalization as a Driver and Industries with High Demand

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Modern factoring providers rely on digital interfaces (e.g., DATEV, Lexware) and automated processes:

  • Invoices are submitted directly from accounting software.
  • Incoming payments and payment reminders are handled by the system.
  • Transparency: An overview of sold, paid, or outstanding invoices at any time.

Factoring is particularly useful in industries with:

  • Sectors with high intermediate consumption (e.g., construction, mechanical engineering)
  • Long payment terms (e.g., healthcare, logistics)
  • Project-Based Services

In this case, factoring acts as a buffer between the completion of the service and the receipt of payment.

Challenges and Outlook for 2026

Despite this growth, the industry is taking a cautious view of 2026:

  • The economic outlook is rated 2.6 (Source: German Factoring Association).
  • Reasons for caution:
    • High Energy Prices
    • Geopolitical Tensions
    • Increasing Bureaucracy
    • Uncertainties in International Supply Chains

Opportunities for the Future

  • Government investment in infrastructure and defense could provide a boost.
  • Structural reforms and the reduction of bureaucracy are necessary to strengthen Germany as a business location.

Conclusion: Factoring as a Strategic Tool

In 2025, factoring will not be a stopgap measure, but rather a strategic financing decision—especially for small and medium-sized businesses and trade businesses. In times of insolvency risks, late payments, and liquidity shortages, it offers:

✔ Immediate ability to act thanks to rapid access to liquidity
✔ Protection against payment defaults
✔ Improved balance sheet ratios
✔ Time savings through digital processes

For businesses, the bottom line is this: If you want to secure your liquidity in 2025 while remaining flexible, factoring is virtually unavoidable.

Fabian Sarafin, managing director of GFL Finanzierungs-GmbH & Co. KG, can only confirm this:

“For many companies, factoring is a useful addition to their financing mix. Especially in today’s climate, where banks’ lending guidelines are becoming increasingly strict, flexible financing options like factoring are playing an ever-greater role. We always strive to achieve the greatest possible financing leverage for our clients from the assets on their balance sheets, and factoring is often a key component of current assets.”