Working Capital Financing | Market Update May 2025
Shifting Financing Strategies: Key Developments in Working Capital Financing
In today’s challenging market environment, working capital financing is becoming a core element of corporate funding strategies.
Rising inflation, market volatility, and a more selective lending environment have significantly increased the demands on corporate liquidity management. At the same time, new strategic levers are emerging: modern working capital financing solutions – including factoring, supply chain financing, and asset-based lending – enable companies to optimize payment terms, secure liquidity, and strengthen financial agility.
Demand remains on the rise. The German factoring market alone recently reached €304bn in volume – around 10% of GDP – with 96.6% of clients being SMEs with annual revenues below €10m.
Alternative lenders are playing an increasingly vital role – not merely as a response to tighter bank lending, but as strategic partners delivering tailored, technology-driven financing solutions.
In this report, we analyse:
- The role of working capital financing (WCF) in corporate funding strategies
- Recent key dynamics and emerging trends
- Success factors in structuring and executing WCF programs
We hope you find this report insightful and look forward to discussing the findings with you.
Ihre Experten bei Oaklins Germany
Managing Director
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