UK Business and Professional Services Sector Invoice Finance Statistics 2026
Professional, scientific and technical firms make up 15.3% of all UK registered businesses and 13.6% of UK gross value added. Against a Bank Rate of 3.75% and a market that advanced £22.7bn to 40,100 UK businesses in 2024, 70% of small firms in this sector reported at least one late payment in early 2025.
Key statistics
Total funds advanced by UK invoice finance and asset-based lending providers, 2024. Source: UK Finance
UK businesses using invoice finance or asset-based lending facilities at end of 2024. Source: UK Finance
Combined annual turnover of businesses supported by invoice finance and asset-based lending, 2024. Source: UK Finance
Funds in use at any one time across UK Finance member invoice finance and ABL facilities. Source: UK Finance
Share of invoice finance and ABL clients using factoring rather than invoice discounting. Source: UK Finance
Typical advance rate range against invoice value. Source: UK Finance
Registered professional, scientific and technical services businesses on the UK register, March 2025. Source: ONS
Share of all UK registered businesses classified as professional, scientific and technical activities, March 2025. Source: ONS
Professional, scientific and support services' share of UK gross value added, 2023. Source: ONS
Bank of England Bank Rate, as at March 2026. Source: Bank of England
Small firms that experienced at least one late payment in the first quarter of 2025. Source: FSB
Small firms paid late in the past three months, 2025. Source: FSB
Average payment delay across UK businesses, 2025. Source: FSB
Average payment terms offered by micro and small companies to their customers, 2025. Source: FSB
Average payment terms offered by large companies to their suppliers, 2025. Source: FSB
Average amount owed to a small business in overdue invoices at any one time, 2025. Source: FSB
| Metric | Value | Source |
|---|---|---|
| Total funds advanced by UK invoice finance and asset-based lending providers, 2024 | £22.7bn | UK Finance |
| UK businesses using invoice finance or asset-based lending facilities at end of 2024 | 40,100 | UK Finance |
| Combined annual turnover of businesses supported by invoice finance and asset-based lending, 2024 | £315bn+ | UK Finance |
| Funds in use at any one time across UK Finance member invoice finance and ABL facilities | £20bn+ | UK Finance |
| Share of invoice finance and ABL clients using factoring rather than invoice discounting | One-third | UK Finance |
| Typical advance rate range against invoice value | 80% to 90% | UK Finance |
| Registered professional, scientific and technical services businesses on the UK register, March 2025 | 755,000 | ONS |
| Share of all UK registered businesses classified as professional, scientific and technical activities, March 2025 | 15.3% | ONS |
| Professional, scientific and support services' share of UK gross value added, 2023 | 13.6% | ONS |
| Bank of England Bank Rate, as at March 2026 | 3.75% | Bank of England |
| Small firms that experienced at least one late payment in the first quarter of 2025 | 70% | FSB |
| Small firms paid late in the past three months, 2025 | 54% | FSB |
| Average payment delay across UK businesses, 2025 | 32 days | FSB |
| Average payment terms offered by micro and small companies to their customers, 2025 | 46 days | FSB |
| Average payment terms offered by large companies to their suppliers, 2025 | 56 days | FSB |
| Average amount owed to a small business in overdue invoices at any one time, 2025 | £22,000 | FSB |
Source: UK Finance, ONS, Bank of England, FSB
View as plain-text Markdown
### UK Business and Professional Services Sector Invoice Finance Statistics 2026: key figures | Metric | Value | Source | | --- | --- | --- | | Total funds advanced by UK invoice finance and asset-based lending providers, 2024 | £22.7bn | UK Finance | | UK businesses using invoice finance or asset-based lending facilities at end of 2024 | 40,100 | UK Finance | | Combined annual turnover of businesses supported by invoice finance and asset-based lending, 2024 | £315bn+ | UK Finance | | Funds in use at any one time across UK Finance member invoice finance and ABL facilities | £20bn+ | UK Finance | | Share of invoice finance and ABL clients using factoring rather than invoice discounting | One-third | UK Finance | | Typical advance rate range against invoice value | 80% to 90% | UK Finance | | Registered professional, scientific and technical services businesses on the UK register, March 2025 | 755,000 | ONS | | Share of all UK registered businesses classified as professional, scientific and technical activities, March 2025 | 15.3% | ONS | | Professional, scientific and support services' share of UK gross value added, 2023 | 13.6% | ONS | | Bank of England Bank Rate, as at March 2026 | 3.75% | Bank of England | | Small firms that experienced at least one late payment in the first quarter of 2025 | 70% | FSB | | Small firms paid late in the past three months, 2025 | 54% | FSB | | Average payment delay across UK businesses, 2025 | 32 days | FSB | | Average payment terms offered by micro and small companies to their customers, 2025 | 46 days | FSB | | Average payment terms offered by large companies to their suppliers, 2025 | 56 days | FSB | | Average amount owed to a small business in overdue invoices at any one time, 2025 | £22,000 | FSB | Source: UK Finance, ONS, Bank of England, FSB
“UK Finance does not publish a sector-by-sector breakdown of invoice finance clients or funds in use, so the £22.7bn market total here sits alongside, not within, the ONS and FSB figures specific to professional and business services; there is no single published cross-tabulation of invoice finance uptake by this sector.”
What the numbers mean
Professional and business services is one of the largest segments of the UK economy by business count, with around 755,000 registered firms and a 13.6% share of gross value added. It is also a sector defined by project-based billing, retainer structures and client relationships where invoices are frequently settled well outside agreed terms. The FSB's 2025 late payments research names professional services, alongside construction and retail, among the sectors hit hardest by late payment, with small firms across the economy owed an average of £22,000 in overdue invoices at any one time.
Invoice finance and asset-based lending exist to bridge that gap between billing a client and being paid. UK Finance figures show the wider market advanced £22.7bn to 40,100 businesses in 2024, against £315bn of client turnover, with typical advance rates of 80% to 90% of invoice value.
For a professional services firm carrying £46-day average payment terms from smaller clients and 56-day terms from larger ones, releasing cash tied up in unpaid invoices can smooth payroll and overhead costs that do not wait for client payment. With the Bank of England's Bank Rate at 3.75%, the variable cost of funds underlying most invoice finance facilities has eased from its 2025 highs, though the margin a lender charges on top still varies by facility size, sector risk and debtor concentration.
FAQs
How many UK businesses are in the professional and business services sector?
ONS figures put registered professional, scientific and technical services businesses at around 755,000 as at March 2025, which is 15.3% of all registered UK businesses.
How much does the UK invoice finance market advance to businesses each year?
UK Finance reported £22.7bn advanced across 40,100 businesses in 2024, supporting £315bn of combined client turnover.
Why are professional services firms particularly exposed to late payment?
The FSB's 2025 late payments research names professional services, alongside construction and retail, among the sectors hit hardest, reflecting project-based billing and payment terms that often run well beyond invoice dates.
What advance rate can a professional services firm typically expect from invoice finance?
UK Finance data shows most invoice finance facilities advance 80% to 90% of invoice value, though the exact rate depends on debtor quality and facility type.
How does the Bank of England base rate affect the cost of invoice finance?
Most invoice finance facilities charge a discount margin on top of the Bank of England's Bank Rate, which stood at 3.75% as at March 2026, so movements in the base rate feed directly into the variable cost of a facility.
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: 22 August 2026