UK Export Invoice Finance Statistics 2026

What is export invoice finance?

Export invoice finance is a funding arrangement where a lender advances cash against unpaid invoices owed by overseas buyers. It works in the same way as domestic invoice discounting or factoring, but the receivables relate to cross-border sales. The lender releases a percentage of the invoice value, typically 70 to 90 percent, and the balance minus fees once the overseas buyer pays.

Is export invoice finance more expensive than domestic invoice finance?

Generally yes, by a modest margin. The additional cost reflects higher credit risk on overseas debtors, currency complications and the cost of any trade credit insurance the lender requires. With the BoE base rate at 3.75%, the total cost of an export invoice finance facility will vary by provider, debtor country and the creditworthiness of the overseas buyer, but businesses should expect a slightly wider margin than on a purely domestic facility.

Do I need trade credit insurance alongside export invoice finance?

Many lenders strongly recommend or require trade credit insurance when funding export receivables, particularly for buyers in higher-risk markets. The insurance protects against non-payment due to buyer insolvency or, in some cases, political risk. Around 27 percent of UK export invoice finance users hold trade credit insurance alongside their facility, according to BFA data. Bundled products that combine both are available from several providers.

Can UK Export Finance help SMEs access export invoice finance?

Yes. UKEF's export working capital guarantee scheme can help SMEs that struggle to obtain sufficient commercial export finance by guaranteeing a portion of the lender's exposure. This is particularly useful where the overseas buyer's country risk deters a commercial lender from funding the full invoice value. UKEF supported around 3,200 SME exporters in 2023-24 with total support of £820m across its schemes.

Which sectors use export invoice finance most in the UK?

Manufacturing, wholesale and distribution collectively account for around 55 percent of UK export invoice finance clients, reflecting the goods-intensive nature of most SME exporting. Professional services and technology businesses export heavily too, but their revenue streams are often structured differently, with retainers, milestone payments or subscription models that may suit different financing products rather than traditional invoice discounting against single export invoices.