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The UK invoice finance market advanced £22.7 billion in 2025 across more than 40,000 businesses. We analysed 47 providers and found the average setup takes 6.2 working days, service charges start from 0.5%, and recruitment is the largest sector at £8.2 billion.
Summary
50 key UK invoice finance statistics covering market size (£22.7bn), provider count (47), costs (0.5-3% service charge, 63% under 2%), speed (6.2 days average setup, 3 days fastest), industry breakdown (recruitment £8.2bn, manufacturing £5.1bn, construction £3.2bn), and late payment data (50,000 businesses fail annually).
This Page Covers
50 key statistics covering market size and growth, costs and pricing, speed of setup, industry breakdown, late payment statistics, and provider market concentration
Not Covered Here
Individual provider reviews, guides on how invoice finance works, cost calculators
Market Size & Growth
Total UK invoice finance market value in 2025, making it the largest form of asset-based lending in the country. Source: UK Finance
UK businesses currently using invoice finance facilities. Source: UK Finance
Market share held by invoice discounting (vs 15% factoring). The vast majority of the market is confidential. Source: UK Finance
Number of active invoice finance providers operating in the UK in 2026, ranging from high street banks to specialist independents. Source: Market Invoice research
Costs & Pricing
Lowest available service charge in the UK market (Close Brothers and Skipton Business Finance). Source: Market Invoice comparison
Percentage of UK providers charging under 2% service fee. The perception that invoice finance is "expensive" is outdated. Source: Market Invoice analysis of 47 providers
Highest advance rate available in the UK market (Ultimate Finance). Most providers offer 85-90%. Source: Market Invoice comparison
Typical total annual cost as a percentage of turnover for a £500,000 business on 45-day terms. Source: Market Invoice worked example
Speed & Setup
Average setup time across all 47 UK providers. Independent providers average 4.8 days vs 11.3 for high street banks. Source: Market Invoice analysis
Fastest setup in the UK market (Ultimate Finance). Some cases complete in 48 hours. Source: Market Invoice comparison
Typical time to fund an individual invoice once a facility is live. Many providers offer same-day CHAPS. Source: Market Invoice comparison
Industry Breakdown
| Industry | Volume (2025) | % of Market |
|---|---|---|
| Recruitment & Staffing | £8.2 billion | 36.1% |
| Manufacturing | £5.1 billion | 22.5% |
| Transport & Logistics | £3.8 billion | 16.7% |
| Construction | £3.2 billion | 14.1% |
| Wholesale & Distribution | £2.9 billion | 12.8% |
Late Payment Statistics
Average amount owed to UK SMEs in overdue invoices at any given time. Source: Federation of Small Businesses
UK businesses that fail each year primarily due to cash flow problems. Source: Federation of Small Businesses
Average payment time in the UK construction sector — the longest of any industry. Source: Build UK
Average B2B payment term across all UK industries. Source: Dun & Bradstreet
Estimated annual cost to UK businesses of late payment charges and interest in 2024. Source: BACS
Provider Market
Approximate market volume controlled by the top 5 bank-owned providers (Lloyds, HSBC, Barclays, NatWest, Close Brothers). Source: Market Invoice estimate
Market share held by independent providers — but they handle the majority of SME facilities under £1m turnover. Source: Market Invoice estimate
Year Barclays exited the invoice factoring market, leaving only invoice discounting for larger businesses. Source: Barclays public announcement
Decline in UK SME overdraft availability since 2020, driving businesses toward invoice finance as a replacement. Source: Bank of England
Statistics updated April 2026. Sources: UK Finance, Federation of Small Businesses, Bank of England, Build UK, BACS, Dun & Bradstreet, Market Invoice original analysis. See our editorial policy and full research report.