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Global Working Capital Loan Market to reach USD XX million by 2028.

Global Working Capital Loan Market Size study, By Service Provider (Banks, Non-Banking Financial Institutions, and Others) and End User (Business and Individuals), and Regional Forecasts 2022-2028

Product Code: BFBFSI-87278149
Publish Date: 14-08-2022
Page: 200

Global Working Capital Loan Market is valued approximately USD XX million in 2021 and is anticipated to grow with a healthy growth rate of more than XX % over the forecast period 2022-2028.

The Working Capital Loan can be defined as type of loan that is availed by businesses to fund the day-to-day operations of a business, ranging from payment of employees’ wages and salaries to covering accounts payable etc. These loans are not used to buy long-term assets or investments. Working Capital Loans can be availed in different forms such as Overdraft Facility or Cash Credit, Term Loan, Bank Guarantee, Packing Credit, Letter of Credit, Accounts Receivable Loan and Post Shipment Finance among others The growing financing needs of micro, small and medium enterprises (MSMEs) in emerging markets and increasing utilization of new age technologies in lending process as well as strategic initiatives from leading market players are factors that are accelerating the global market demand. For instance, as per International Finance Corporation (IFC) estimates – as of 2019, In developing countries around 65 million firms, or 40% of micro, small and medium enterprises (MSMEs), have an unmet financing need of USD 5.2 trillion every year. This amount is equivalent to 1.4 times the current level of the global MSME lending. East Asia and Pacific accounts for the largest share (46%) of the total global finance gap and it is followed by Latin America and the Caribbean (23%) and Europe and Central Asia (15%). Furthermore, strategic initiatives from leading market players such as business expansion and innovative product launches would influence the growth of Working Capital loan Market. For instance, in January 2022, India based Cholamandalam Investment and Finance Company (Chola), a part of Murugappa Group launched three new business divisions in the consumer and SME spaces, and partnered with leading fintech companies like BankBazaar, KreditBee and Paytail. Through its SME division the company would work towards term-loan, working capital finance, equipment finance and supply chain finance. Moreover, in April 2022, USA based Citibank launched new innovative products named Sustainable Trade and Working Capital Loans (Sustainable T&WC Loans) solution in Asia Pacific (APAC), Europe, Middle East and Africa (EMEA) and Latin America (LATAM) regions. In addition, the Bank committed USD 1 trillion to sustainable finance by 2030, which includes USD 500 billion for environmental finance and USD 500 billion for social finance. Also, growing penetration of private banks & NBFCs in emerging markets and favorable initiatives from government authorities are anticipated to act as a catalyzing factor for the market demand during the forecast period. However, a high risk of defaults and volatility in interest rates impede the growth of the market over the forecast period of 2022-2028.

The key regions considered for the global Working Capital Loan Market study include Asia Pacific, North America, Europe, Latin America, and the Rest of the World. North America is the leading region across the world in terms of market share owing to the growing number of Small and Medium Sized businesses and presence of leading banks and financial institutions in the region. Whereas, Asia Pacific is anticipated to exhibit a significant growth rate over the forecast period 2022-2028. Factors such as the thriving growth of startups and, increasing penetration of private Banks and NBFCs in the region would create lucrative growth prospects for the global Working Capital Loan Market across the Asia Pacific region.

Major market players included in this report are:
US Bancorp
Bank of America Corporation
Wells Fargo & Company
Citibank
JPMorgan Chase & Co.
BB&T
PNC Financial Services Group Inc.
Regions Financial Corporation
JPMorgan Chase Bank
First Citizens Bancshares Incorporated

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values to the coming eight years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within each of the regions and countries involved in the study. Furthermore, the report also caters the detailed information about the crucial aspects such as driving factors & challenges which will define the future growth of the market. Additionally, the report shall also incorporate available opportunities in micro markets for stakeholders to invest along with the detailed analysis of competitive landscape and product offerings of key players. The detailed segments and sub-segment of the market are explained below:
By Service Provider
Banks
Non-Banking Financial Institutions
Others
By End User
Business
Individuals
By Region:
North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE

Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
Rest of the World

Furthermore, years considered for the study are as follows:

Historical year – 2018, 2019, 2020
Base year – 2021
Forecast period – 2022 to 2028

Target Audience of the Global Working Capital Loan Market in Market Study:

Key Consulting Companies & Advisors
Large, medium-sized, and small enterprises
Venture capitalists
Value-Added Resellers (VARs)
Third-party knowledge providers
Investment bankers
Investors

Chapter 1. Executive Summary
1.1. Market Snapshot
1.2. Global & Segmental Market Estimates & Forecasts, 2020-2028 (USD Million)
1.2.1. Working Capital Loan Market, by Region, 2020-2028 (USD Million)
1.2.2. Working Capital Loan Market, by Service Provider, 2020-2028 (USD Million)
1.2.3. Working Capital Loan Market, by End User, 2020-2028 (USD Million)
1.3. Key Trends
1.4. Estimation Methodology
1.5. Research Assumption
Chapter 2. Global Working Capital Loan Market Definition and Scope
2.1. Objective of the Study
2.2. Market Definition & Scope
2.2.1. Scope of the Study
2.2.2. Industry Evolution
2.3. Years Considered for the Study
2.4. Currency Conversion Rates
Chapter 3. Global Working Capital Loan Market Dynamics
3.1. Working Capital Loan Market Impact Analysis (2020-2028)
3.1.1. Market Drivers
3.1.1.1. Growing financing need of MSMEs in developing regions.
3.1.1.2. Rising utilization of new age technologies in lending process.
3.1.1.3. Strategic initiatives from leading market players.
3.1.2. Market Challenges
3.1.2.1. High risk of defaults
3.1.2.2. Volatility in interest rates
3.1.3. Market Opportunities
3.1.3.1. Growing penetration of private banks & NBFCs in emerging markets.
3.1.3.2. Favourable initiatives from government authorities.
Chapter 4. Global Working Capital Loan Market Industry Analysis
4.1. Porter’s 5 Force Model
4.1.1. Bargaining Power of Suppliers
4.1.2. Bargaining Power of Buyers
4.1.3. Threat of New Entrants
4.1.4. Threat of Substitutes
4.1.5. Competitive Rivalry
4.1.6. Futuristic Approach to Porter’s 5 Force Model (2018-2028)
4.2. PEST Analysis
4.2.1. Political
4.2.2. Economical
4.2.3. Social
4.2.4. Technological
4.3. Investment Adoption Model
4.4. Analyst Recommendation & Conclusion
4.5. Top investment opportunity
4.6. Top winning strategies
Chapter 5. Risk Assessment: COVID-19 Impact
5.1.1. Assessment of the overall impact of COVID-19 on the industry
5.1.2. Pre COVID-19 and post COVID-19 Market scenario
Chapter 6. Global Working Capital Loan Market, by Service Provider
6.1. Market Snapshot
6.2. Global Working Capital Loan Market by Service Provider, Performance – Potential Analysis
6.3. Global Working Capital Loan Market Estimates & Forecasts by Service Provider 2018-2028 (USD Million)
6.4. Working Capital Loan Market, Sub Segment Analysis
6.4.1. Banks
6.4.2. Non-Banking Financial Institutions
6.4.3. Others
Chapter 7. Global Working Capital Loan Market, by End User
7.1. Market Snapshot
7.2. Global Working Capital Loan Market by End User, Performance – Potential Analysis
7.3. Global Working Capital Loan Market Estimates & Forecasts by End User 2018-2028 (USD Million)
7.4. Working Capital Loan Market, Sub Segment Analysis
7.4.1. Business
7.4.2. Individuals
Chapter 8. Global Working Capital Loan Market, Regional Analysis
8.1. Working Capital Loan Market, Regional Market Snapshot
8.2. North America Working Capital Loan Market
8.2.1. U.S. Working Capital Loan Market
8.2.1.1. Service Provider estimates & forecasts, 2018-2028
8.2.1.2. End User estimates & forecasts, 2018-2028
8.2.2. Canada Working Capital Loan Market
8.3. Europe Working Capital Loan Market Snapshot
8.3.1. U.K. Working Capital Loan Market
8.3.2. Germany Working Capital Loan Market
8.3.3. France Working Capital Loan Market
8.3.4. Spain Working Capital Loan Market
8.3.5. Italy Working Capital Loan Market
8.3.6. Rest of Europe Working Capital Loan Market
8.4. Asia-Pacific Working Capital Loan Market Snapshot
8.4.1. China Working Capital Loan Market
8.4.2. India Working Capital Loan Market
8.4.3. Japan Working Capital Loan Market
8.4.4. Australia Working Capital Loan Market
8.4.5. South Korea Working Capital Loan Market
8.4.6. Rest of Asia Pacific Working Capital Loan Market
8.5. Latin America Working Capital Loan Market Snapshot
8.5.1. Brazil Working Capital Loan Market
8.5.2. Mexico Working Capital Loan Market
8.6. Rest of The World Working Capital Loan Market

Chapter 9. Competitive Intelligence
9.1. Top Market Strategies
9.2. Company Profiles
9.2.1. US Bancorp
9.2.1.1. Key Information
9.2.1.2. Overview
9.2.1.3. Financial (Subject to Data Availability)
9.2.1.4. Product Summary
9.2.1.5. Recent Developments
9.2.2. Bank of America Corporation
9.2.3. Wells Fargo & Company
9.2.4. Citibank
9.2.5. JPMorgan Chase & Co.
9.2.6. BB&T
9.2.7. PNC Financial Services Group Inc.
9.2.8. Regions Financial Corporation
9.2.9. JPMorgan Chase Bank
9.2.10. First Citizens Bancshares Incorporated
Chapter 10. Research Process
10.1. Research Process
10.1.1. Data Mining
10.1.2. Analysis
10.1.3. Market Estimation
10.1.4. Validation
10.1.5. Publishing
10.2. Research Attributes
10.3. Research Assumption

At Bizwit Research and Consultancy, we employ a thorough and iterative research methodology with the goal of minimizing discrepancies, ensuring the provision of highly accurate estimates and predictions over the forecast period. Our approach involves a combination of bottom-up and top-down strategies to effectively segment and estimate quantitative aspects of the market, utilizing our proprietary data & AI tools. Our Proprietary Tools allow us for the creation of customized models specific to the research objectives. This enables us to develop tailored statistical models and forecasting algorithms to estimate market trends, future growth, or consumer behavior. The customization enhances the accuracy and relevance of the research findings.
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Data Collection:
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In addition to primary sources, we extensively utilize secondary sources to enhance our research. These include directories, databases, journals focusing on related industries, company newsletters, and information portals such as Bloomberg, D&B Hoovers, and Factiva. These secondary sources enable us to identify and gather valuable information for our comprehensive, technical, market-oriented, and commercial study of the market. Additionally, we utilize AI algorithms to automate the collection of vast amounts of data from various sources such as surveys, social media platforms, online transactions, and web scraping. And employ Big Data technologies for storage and processing of large datasets, ensuring that no valuable information is missed during the data collection process.
Data Analysis:
Our team of experts carefully examine the gathered data using suitable statistical techniques and qualitative analysis methods. For quantitative analysis, we employ descriptive statistics, regression analysis, and other advanced statistical methods, depending on the characteristics of the data. This analysis may also incorporate the utilization of AI tools and big data analysis techniques to extract meaningful insights.
To ensure the accuracy and reliability of our findings, we extensively leverage data science techniques, which help us minimize discrepancies and uncertainties in our analysis. We employ Data Science to clean and preprocess the data, ensuring its quality and reliability. This involves handling missing data, removing outliers, standardizing variables, and transforming data into suitable formats for analysis. The application of data science techniques enhances our accuracy, efficiency, and depth of analysis, enabling us to stay competitive in dynamic market environments.
Market Size Estimation:
Our proprietary data tools play a crucial role in deriving our market estimates and forecasts. Each study involves the creation of a unique and customized model. The model incorporates the gathered information on market dynamics, technology landscape, application development, and pricing trends. AI techniques, such as machine learning and deep learning, aid us to analyze patterns within the data to identify correlations, trends, and relationships. By recognizing patterns in consumer behavior, purchasing habits, or market dynamics, our AI algorithms aid us in more precise estimations of market size. These factors are simultaneously analyzed within the model, allowing for a comprehensive assessment. To quantify their impact over the forecast period, correlation, regression, and time series analysis are employed.
To estimate and validate the market size, we employ both top-down and bottom-up approaches. The preference is given to a bottom-up approach, where key regional markets are analyzed as separate entities. This data is then integrated to obtain global estimates. This approach is crucial as it provides a deep understanding of the industry and helps minimize errors.
In our forecasting process, we consider various parameters such as economic tools, technological analysis, industry experience, and domain expertise. By taking all these factors into account, we strive to produce accurate and reliable market forecasts. When forecasting, we take into consideration several parameters, which include:
Market driving trends and favorable economic conditions
Restraints and challenges that are expected to be encountered during the forecast period.
Anticipated opportunities for growth and development
Technological advancements and projected developments in the market
Consumer spending trends and dynamics
Shifts in consumer preferences and behaviors.
The current state of raw materials and trends in supply versus pricing
Regulatory landscape and expected changes or developments.
The existing capacity in the market and any expected additions or expansions up to the end of the forecast period.
To assess the market impact of these parameters, we assign weights to each one and utilize weighted average analysis. This process allows us to quantify their influence on the market and derive an expected growth rate for the forecasted period. By considering these various factors and applying a weighted analysis approach, we strive to provide accurate and reliable market forecasts.
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