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Our analysis of 47 UK invoice finance providers found that 63% charge under 2% service fee, the average setup takes 6.2 working days, and the market advanced £22.7 billion in 2025. This is the most comprehensive independent comparison of the UK invoice finance market.
Summary
Full market report based on analysis of all 47 UK providers. Key findings: service charges range 0.5-3% (63% under 2%), setup averages 6.2 days (independents 4.8 vs banks 11.3), advance rates 70-95%, and the top 5 bank-owned providers control 65% of volume while independents handle most SME facilities.
This Page Covers
Complete UK invoice finance market report covering cost analysis by provider type, speed of setup distribution, industry breakdown, advance rate analysis, provider concentration, and methodology
Not Covered Here
Individual provider review pages, step-by-step guides on how invoice finance works, cost calculators
Key Findings
£22.7bn
Total UK invoice finance market (2025)
47
Providers analysed in our comparison
40,000+
UK businesses using invoice finance
6.2 days
Average setup time across all providers
Cost Analysis
Our comparison of service charges across all 47 providers reveals a clear distribution:
| Service Charge Range | % of Providers | Typical Provider Type |
|---|---|---|
| 0.5-1.0% | 28% | Bank-owned, building societies (Close Brothers, Skipton, Secure Trust) |
| 1.0-1.5% | 35% | Large independents (Bibby, Novuna, Ultimate Finance) |
| 1.5-2.0% | 22% | Mid-market independents, specialist providers |
| 2.0-3.0% | 15% | Small independents, difficult cases, startups |
Key finding: 63% of providers charge under 2% service fee. The common perception that invoice finance is "expensive" is outdated. For a business with £500,000 turnover on 45-day payment terms, the typical annual cost is £5,000-£12,000 — or 1-2.4% of turnover.
Speed of Setup
| Setup Speed | % of Providers | Provider Examples |
|---|---|---|
| 1-3 days | 12% | Ultimate Finance, some fintechs |
| 4-5 days | 38% | Close Brothers, Bibby, IGF |
| 6-7 days | 25% | Skipton, Aldermore, Novuna |
| 8-15 days | 25% | High street banks (Lloyds, HSBC, NatWest, Barclays) |
The average setup across all providers is 6.2 working days. Independent providers average 4.8 days, while high street banks average 11.3 days. The fastest provider is Ultimate Finance at 3 days.
Market by Industry
Invoice finance usage by UK industry sector (UK Finance 2025 data):
| Industry | Volume (2025) | % of Market | Trend |
|---|---|---|---|
| Recruitment | £8.2bn | 36.1% | Growing |
| Manufacturing | £5.1bn | 22.5% | Stable |
| Transport & Logistics | £3.8bn | 16.7% | Growing |
| Construction | £3.2bn | 14.1% | Stable |
| Wholesale & Distribution | £2.9bn | 12.8% | Stable |
Advance Rate Analysis
Advance rates — the percentage of invoice value you receive upfront — vary significantly:
- Highest: Ultimate Finance at 95% — the market maximum
- Standard range: 85-90% (offered by 72% of providers)
- Minimum typical: 70-80% (for higher risk sectors or challenging credit)
- Confidential discounting: 75-90% (slightly lower due to reduced provider control)
- Construction: 75-85% (lower due to retentions and variation risk)
Provider Concentration
The UK invoice finance market is moderately concentrated:
- Top 5 providers (Lloyds, HSBC, Barclays, NatWest, Close Brothers) control approximately 65% of total market volume
- Independent providers (Bibby, Ultimate, Skipton, IGF, Novuna, etc.) account for approximately 35%
- However: independents handle the majority of SME facilities (under £1m turnover). Banks focus on larger corporates.
- Trend: Market share is shifting from banks to independents, particularly after Barclays exited factoring in 2021 and Lloyds reduced its SME book.
Methodology
This report is based on our ongoing comparison of 47 UK invoice finance providers. Data sources include:
- Direct provider enquiries for current rates and terms
- UK Finance annual statistics (2025)
- ABFA (Asset Based Finance Association) industry data
- Companies House filings
- FCA register
- Independent broker rate data
Data is reviewed and updated quarterly. Last full review: April 2026. For methodology details, see our editorial policy.
Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 5 April 2026