UK Bank vs Independent Invoice Finance Market Share Statistics 2026
UK invoice finance and asset-based lending funds in use stood at roughly £24.3bn in late 2025, spread across around 38,000 businesses. Independent, non-bank lenders now hold an estimated 42% of funds in use, up from a much smaller share a decade ago, while the Bank of England base rate sits at 3.75% following its change effective 18 December 2025.
Key statistics
Total UK invoice finance and asset-based lending funds in use, Q4 2025. Source: UK Finance
Number of UK businesses using invoice finance or asset-based lending, 2025. Source: UK Finance
Bank-owned lenders' estimated share of total UK invoice finance funds in use. Source: UK Finance
Independent (non-bank) lenders' estimated share of total UK invoice finance funds in use. Source: UK Finance
Number of asset-based finance member firms reporting to UK Finance. Source: UK Finance
Bank of England base rate, last changed 18 December 2025. Source: Bank of England
UK private sector business population, start of 2025. Source: Department for Business and Trade, Business Population Estimates
Proportion of UK private sector businesses classed as small (0-49 employees). Source: Department for Business and Trade, Business Population Estimates
SME share of UK private sector employment. Source: Department for Business and Trade, Business Population Estimates
SME share of UK private sector turnover. Source: Department for Business and Trade, Business Population Estimates
Total companies on the register at Companies House. Source: Companies House
New UK company incorporations registered in 2025. Source: Companies House
Default statutory payment term for UK commercial invoices where no term is agreed. Source: GOV.UK, Late Payment of Commercial Debts (Interest) Act
Statutory interest premium added to base rate for late commercial payment claims. Source: GOV.UK, Late Payment of Commercial Debts (Interest) Act
Minimum Companies House penalty for private company accounts filed up to one month late. Source: Companies House
| Metric | Value | Source |
|---|---|---|
| Total UK invoice finance and asset-based lending funds in use, Q4 2025 | £24.3bn | UK Finance |
| Number of UK businesses using invoice finance or asset-based lending, 2025 | c. 38,000 | UK Finance |
| Bank-owned lenders' estimated share of total UK invoice finance funds in use | 58% | UK Finance |
| Independent (non-bank) lenders' estimated share of total UK invoice finance funds in use | 42% | UK Finance |
| Number of asset-based finance member firms reporting to UK Finance | c. 40 | UK Finance |
| Bank of England base rate, last changed 18 December 2025 | 3.75% | Bank of England |
| UK private sector business population, start of 2025 | 5.5 million | Department for Business and Trade, Business Population Estimates |
| Proportion of UK private sector businesses classed as small (0-49 employees) | 99.8% | Department for Business and Trade, Business Population Estimates |
| SME share of UK private sector employment | 60% | Department for Business and Trade, Business Population Estimates |
| SME share of UK private sector turnover | 52% | Department for Business and Trade, Business Population Estimates |
| Total companies on the register at Companies House | c. 5.4 million | Companies House |
| New UK company incorporations registered in 2025 | c. 800,000 | Companies House |
| Default statutory payment term for UK commercial invoices where no term is agreed | 30 days | GOV.UK, Late Payment of Commercial Debts (Interest) Act |
| Statutory interest premium added to base rate for late commercial payment claims | 8% | GOV.UK, Late Payment of Commercial Debts (Interest) Act |
| Minimum Companies House penalty for private company accounts filed up to one month late | £150 | Companies House |
Source: UK Finance, Bank of England, Department for Business and Trade, Business Population Estimates, Companies House, GOV.UK, Late Payment of Commercial Debts (Interest) Act
View as plain-text Markdown
### UK Bank vs Independent Invoice Finance Market Share Statistics 2026: key figures | Metric | Value | Source | | --- | --- | --- | | Total UK invoice finance and asset-based lending funds in use, Q4 2025 | £24.3bn | UK Finance | | Number of UK businesses using invoice finance or asset-based lending, 2025 | c. 38,000 | UK Finance | | Bank-owned lenders' estimated share of total UK invoice finance funds in use | 58% | UK Finance | | Independent (non-bank) lenders' estimated share of total UK invoice finance funds in use | 42% | UK Finance | | Number of asset-based finance member firms reporting to UK Finance | c. 40 | UK Finance | | Bank of England base rate, last changed 18 December 2025 | 3.75% | Bank of England | | UK private sector business population, start of 2025 | 5.5 million | Department for Business and Trade, Business Population Estimates | | Proportion of UK private sector businesses classed as small (0-49 employees) | 99.8% | Department for Business and Trade, Business Population Estimates | | SME share of UK private sector employment | 60% | Department for Business and Trade, Business Population Estimates | | SME share of UK private sector turnover | 52% | Department for Business and Trade, Business Population Estimates | | Total companies on the register at Companies House | c. 5.4 million | Companies House | | New UK company incorporations registered in 2025 | c. 800,000 | Companies House | | Default statutory payment term for UK commercial invoices where no term is agreed | 30 days | GOV.UK, Late Payment of Commercial Debts (Interest) Act | | Statutory interest premium added to base rate for late commercial payment claims | 8% | GOV.UK, Late Payment of Commercial Debts (Interest) Act | | Minimum Companies House penalty for private company accounts filed up to one month late | £150 | Companies House | Source: UK Finance, Bank of England, Department for Business and Trade, Business Population Estimates, Companies House, GOV.UK, Late Payment of Commercial Debts (Interest) Act
“UK Finance's asset-based finance statistics are compiled from its own member firms, not the whole market, so smaller or newer independent lenders outside the trade body's membership are not fully captured and the true independent-lender share may be understated. Funds in use is also a snapshot of outstanding balances at a point in time, not a measure of new business volumes or client turnover during the year.”
What the numbers mean
For most of the period after the 2008 financial crisis, invoice finance in the UK was dominated by the asset-based lending arms of the major clearing banks. As those banks pulled back from riskier working capital lending through the 2010s, independent providers, from long-established names to newer fintech-backed lenders, expanded their share of the market by offering faster underwriting, more flexible facility structures and a willingness to lend against smaller or more concentrated debtor books that banks often declined.
UK Finance's asset-based finance data suggests independent lenders now account for a substantial minority of total funds in use, with bank-owned providers still holding the larger share overall. For an SME choosing between the two, the practical differences tend to matter more than the ownership label: bank-owned facilities are often cheaper for larger, lower-risk borrowers with an existing banking relationship, while independent lenders are frequently more willing to fund newer businesses, single-customer concentration, or sectors banks treat cautiously, usually at a higher discount margin. Base rate movements, such as the change to 3.75% effective 18 December 2025, feed directly into the cost of both types of facility, since most invoice finance pricing is set as a margin over base rate rather than a fixed rate.
FAQs
What is the difference between a bank-owned and an independent invoice finance provider?
Bank-owned providers are invoice finance divisions of major clearing banks such as Barclays, HSBC, Lloyds, NatWest or Santander, usually offered alongside a business's existing banking relationship. Independent providers are standalone finance companies, ranging from long-established asset-based lenders to newer fintech platforms, that are not part of a high street bank.
Why has the independent lender share of the UK invoice finance market grown?
Independent lenders have grown share by underwriting deals that banks are often more cautious about, including newer businesses, single large customers, or sectors seen as higher risk, and by offering faster decisions and more flexible facility structures than typical bank processes.
Are independent invoice finance providers regulated the same way as banks?
Invoice finance itself is not a regulated consumer credit product in the way a mortgage or personal loan is, so both bank-owned and independent providers operate under general business lending and, where applicable, FCA rules on areas like data protection and consumer duty for any regulated activities. Many independent providers are members of UK Finance and follow its asset-based finance code of conduct.
Does provider ownership affect the cost of invoice finance?
It can. Bank-owned providers often price more competitively for larger, lower-risk clients with an established banking relationship, while independent lenders may charge a higher discount margin to reflect the higher-risk debtor books or newer businesses they are more willing to fund. Pricing on both is typically set as a margin over the Bank of England base rate, currently 3.75%.
How do I check which type of provider is right for my business?
Compare quotes from both bank-owned and independent providers against your turnover, customer concentration, sector and how quickly you need funding in place, since providers differ on minimum turnover thresholds, contract length and how much they will advance against a concentrated debtor book.
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.
Last reviewed: 18 July 2026