What this page covers
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
£20bn+
Invoice finance and ABL provided at any one time (UK Finance)
27
Providers compared on full published terms
~£150bn
Finance provided each year by UK Finance members, to tens of thousands of businesses
7.5 days
Average advertised setup (20 providers)
Cost Analysis
Most providers do not publish a service charge. None of the mainstream direct lenders in our dataset of 27 (Time Finance, Skipton, Close Brothers, the high street banks, Bibby, Ultimate Finance and Aldermore) publishes one; each agrees it per facility. As an indicative market range, not any provider's price, UK commercial finance broker ABC Finance says service charges usually fall between 0.5% and 3% of invoice value (checked 25 September 2026). Each provider's figure and its source are in the Rate Index.
Speed of Setup
The mean advertised setup across the 20 providers in our terms dataset that offer invoice finance and publish a setup time is 7.5 working days. The 5 high street banks average 12.5 days; the other 15 average 5.8. The fastest is Hydr at 1 working day. These are advertised setup times taken from each provider's own published terms, averaged across our dataset; they are not independently timed.
Market by Industry
Recruitment, manufacturing, transport, construction and wholesale are among the main users of invoice finance in the UK. No public source publishes a current per-sector split of lending, so we do not quote sector volumes or shares. For the market as a whole, UK Finance says its members provide well over £20 billion at any one time.
Advance Rate Analysis
Advance rates - the percentage of invoice value you receive upfront - vary significantly:
- Highest published by a direct lender: up to 95% (Ultimate Finance and HSBC)
- Most common published figure: up to 90% (Close Brothers, Aldermore, Skipton, Lloyds, NatWest and others)
- Lower caps: Bibby publishes up to 85%. Construction and some confidential facilities usually advance less, because retentions, variations and reduced control over collections add risk
- Recruitment funding: funders such as Sonovate advertise up to 100% on a different model
Provider Concentration
No public source publishes current market shares by provider or provider type, so we do not estimate one. The bank-owned providers are Lloyds, HSBC, Barclays, NatWest and Close Brothers; independents and specialists include Bibby, Ultimate Finance, Skipton Business Finance, IGF and Novuna. In February 2021 Barclays agreed to transfer its factoring portfolio to the independent 4Syte (source).
Q2 2026 Forecast and Outlook
Two structural shifts are reshaping the UK invoice finance market through 2026:
1. Banks focus on larger facilities
Barclays transferred its factoring portfolio to 4Syte in 2021. Published bank minimums in our dataset run from £100,000 (Lloyds) to £300,000 (NatWest) and £1m (HSBC). Independent providers (Bibby, Close Brothers, Ultimate Finance, Skipton) and challenger banks are the operational core of this segment in Q2 2026.
2. Routes for smaller businesses
Some newer and specialist providers state no fixed minimum turnover (Sonovate, for example, in our dataset), while traditional whole-ledger facilities usually start somewhere between £50,000 and £1m depending on the provider. Selective and single-invoice products are the usual route for the smallest businesses.
Methodology
This Q2 2026 report is based on our ongoing comparison of 87 UK invoice finance providers, refreshed quarterly. Data sources:
- Direct provider enquiries for current service charges, advance rates, minimum turnover, and setup speeds (Q2 2026 refresh)
- UK Finance: Invoice Finance and Asset-Based Lending (well over £20 billion provided at any one time; client turnover over £315 billion in 2024; checked September 2026)
- ABFA (Asset Based Finance Association) industry standards and member data
- Companies House filings for provider financial health and trading status
- FCA Register for regulated permissions
- Bank of England base rate (3.75%, effective 18 December 2025)
- FSB late payment research
- DBT Business Population Estimates
- Independent broker pricing data (anonymised)
- ABC Finance invoice finance guide, for the indicative 0.5% to 3% service charge market range (a broker's published statement, not a provider price; checked 25 September 2026)
Provider terms come from the Market Invoice provider dataset; the UK Invoice Finance Rate Index shows each figure with its source. For methodology details, see our about page and editorial policy.
UK Invoice Finance Market Report, FAQ
How big is the UK invoice finance market in 2026?
UK Finance says its invoice finance and asset-based lending members provide well over £20 billion to UK businesses at any one time, and that client businesses had combined turnover of over £315 billion in 2024. That finance goes to tens of thousands of UK client businesses, and UK Finance puts annual finance provided at around £150 billion. Source: UK Finance, Invoice Finance and Asset-Based Lending (https://www.ukfinance.org.uk/our-expertise/commercial-finance/invoice-finance-and-asset-based-lending).
Who are the largest UK invoice finance providers in Q2 2026?
No public source publishes current market shares by provider, so we do not rank them by size. The bank-owned providers are Lloyds, HSBC, Barclays, NatWest and Close Brothers (which prices each agreement individually). Independents and specialists serving SMEs include Bibby Financial Services (sector specialists), Ultimate Finance (advances up to 95%), Skipton Business Finance (building society backed, from £100k turnover) and IGF (larger asset-based facilities).
What service charge do UK invoice finance providers charge in 2026?
Most providers do not publish a service charge. None of the mainstream direct lenders in our dataset of 27 (Time Finance, Skipton, Close Brothers, the high street banks, Bibby, Ultimate Finance and Aldermore) publishes one; each agrees it per facility. As an indicative market range, not any provider's price: ABC Finance, a UK commercial finance broker, says service charges usually fall between 0.5% and 3% of invoice value.
How quickly can a UK business get invoice finance set up?
Mean advertised setup across the 20 providers in our terms dataset that offer invoice finance and publish a setup time is 7.5 working days, taken from each provider's own published terms. The 5 high street banks average 12.5 days; the other 15 average 5.8. Fastest is Hydr at 1 working day.
What advance rate is typical on a UK invoice finance facility in 2026?
Most direct lenders in our dataset publish advances of up to 90%. Ultimate Finance and HSBC publish up to 95%, and Bibby up to 85%. Recruitment funders such as Sonovate advertise up to 100% on a different model. Expect a lower advance in construction, where retentions and variations add risk, and on some confidential facilities.
How is the UK invoice finance market evolving in 2026?
Two structural shifts in Q2 2026: (1) Banks stepping back from small-ticket factoring: Barclays agreed in February 2021 to transfer its factoring portfolio to 4Syte, leaving more of the smallest facilities with independents; (2) Bank of England base rate at 3.75% (December 2025) means total cost of finance remains higher than 2020-22 lows but providers are competing on margin and service rather than headline rate.
What sectors use the most invoice finance in the UK?
Recruitment, manufacturing, transport, construction and wholesale are among the main users of invoice finance in the UK. No public source publishes a current per-sector split of lending, so we do not quote sector volumes or shares.
Is the Market Invoice market report independent?
Yes. Market Invoice is operated by Best Business Loans Ltd (company 16833937), an independent comparison site launched 2026. It is not connected to Kriya, Allica Bank or any lender. Our 87-provider survey draws on direct provider enquiries, UK Finance, ABFA, Companies House, and FCA register data. The fixed introduction fee Market Invoice receives from its introduction partner, eCapital, does not influence the underlying market data presented in this report.
Citation format: Market Invoice (2026). UK Invoice Finance Market Report Q2 2026: 87-provider survey. Best Business Loans Ltd. Available at: https://marketinvoice.co.uk/research/. Accessed [date].
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
Published · Updated