UK Invoice Finance Statistics 2026
UK Finance says its invoice finance and asset-based lending members provide well over £20 billion to tens of thousands of UK businesses at any one time, and that the businesses they support had a combined annual turnover of over £315 billion in 2024. We checked the UK Finance page on 1 October 2026. The other figures below come from the Department for Business and Trade, the Small Business Commissioner and the Bank of England.
Key statistics
Invoice finance and asset-based lending that UK Finance members provide to UK businesses at any one time (UK Finance, checked 1 October 2026). Source: UK Finance
Share of UK businesses (over 1.5 million) affected by late payment each year, from July 2025 research commissioned by the Department for Business and Trade. Source: Small Business Commissioner
Estimated amount owed to UK businesses in late payments at any given time, on average £17,000 per business affected. Source: Small Business Commissioner
Bank of England Bank Rate, last changed on 18 December 2025, which feeds into invoice finance discount charges. Source: Bank of England
Private sector businesses in the UK at the start of 2025, up 3.5% (191,000) on the year. Source: Department for Business and Trade, Business Population Estimates 2025
Share of UK private sector businesses that are small or medium-sized (SMEs). Source: Department for Business and Trade, Business Population Estimates 2025
Annual turnover of UK SMEs at the start of 2025, 51% of total business turnover. Source: Department for Business and Trade, Business Population Estimates 2025
People employed by UK SMEs at the start of 2025, 60% of total private sector employment. Source: Department for Business and Trade, Business Population Estimates 2025
Combined annual turnover of the businesses supported by UK Finance invoice finance and asset-based lending members in 2024. Source: UK Finance
Businesses that close each year because of late payments, across the UK economy. Source: Small Business Commissioner
Advance rate against invoice value that several UK Finance members state for their invoice finance (Lloyds, RBS, Santander UK and Partnership Invoice Finance). It is a maximum, not a typical rate. Source: UK Finance
| Metric | Value | Source |
|---|---|---|
| Invoice finance and asset-based lending that UK Finance members provide to UK businesses at any one time (UK Finance, checked 1 October 2026). | £20bn+ | UK Finance |
| Share of UK businesses (over 1.5 million) affected by late payment each year, from July 2025 research commissioned by the Department for Business and Trade. | 28% | Small Business Commissioner |
| Estimated amount owed to UK businesses in late payments at any given time, on average £17,000 per business affected. | £26bn | Small Business Commissioner |
| Bank of England Bank Rate, last changed on 18 December 2025, which feeds into invoice finance discount charges. | 3.75% | Bank of England |
| Private sector businesses in the UK at the start of 2025, up 3.5% (191,000) on the year. | 5.7 million | Department for Business and Trade, Business Population Estimates 2025 |
| Share of UK private sector businesses that are small or medium-sized (SMEs). | 99.85% | Department for Business and Trade, Business Population Estimates 2025 |
| Annual turnover of UK SMEs at the start of 2025, 51% of total business turnover. | £2.8tn | Department for Business and Trade, Business Population Estimates 2025 |
| People employed by UK SMEs at the start of 2025, 60% of total private sector employment. | 16.9 million | Department for Business and Trade, Business Population Estimates 2025 |
| Combined annual turnover of the businesses supported by UK Finance invoice finance and asset-based lending members in 2024. | £315bn+ | UK Finance |
| Businesses that close each year because of late payments, across the UK economy. | 14,000 | Small Business Commissioner |
| Advance rate against invoice value that several UK Finance members state for their invoice finance (Lloyds, RBS, Santander UK and Partnership Invoice Finance). It is a maximum, not a typical rate. | Up to 90% | UK Finance |
Source: UK Finance, Small Business Commissioner, Bank of England, Department for Business and Trade, Business Population Estimates 2025
View as plain-text Markdown
### UK Invoice Finance Statistics 2026: key figures | Metric | Value | Source | | --- | --- | --- | | Invoice finance and asset-based lending that UK Finance members provide to UK businesses at any one time (UK Finance, checked 1 October 2026). | £20bn+ | UK Finance | | Share of UK businesses (over 1.5 million) affected by late payment each year, from July 2025 research commissioned by the Department for Business and Trade. | 28% | Small Business Commissioner | | Estimated amount owed to UK businesses in late payments at any given time, on average £17,000 per business affected. | £26bn | Small Business Commissioner | | Bank of England Bank Rate, last changed on 18 December 2025, which feeds into invoice finance discount charges. | 3.75% | Bank of England | | Private sector businesses in the UK at the start of 2025, up 3.5% (191,000) on the year. | 5.7 million | Department for Business and Trade, Business Population Estimates 2025 | | Share of UK private sector businesses that are small or medium-sized (SMEs). | 99.85% | Department for Business and Trade, Business Population Estimates 2025 | | Annual turnover of UK SMEs at the start of 2025, 51% of total business turnover. | £2.8tn | Department for Business and Trade, Business Population Estimates 2025 | | People employed by UK SMEs at the start of 2025, 60% of total private sector employment. | 16.9 million | Department for Business and Trade, Business Population Estimates 2025 | | Combined annual turnover of the businesses supported by UK Finance invoice finance and asset-based lending members in 2024. | £315bn+ | UK Finance | | Businesses that close each year because of late payments, across the UK economy. | 14,000 | Small Business Commissioner | | Advance rate against invoice value that several UK Finance members state for their invoice finance (Lloyds, RBS, Santander UK and Partnership Invoice Finance). It is a maximum, not a typical rate. | Up to 90% | UK Finance | Source: UK Finance, Small Business Commissioner, Bank of England, Department for Business and Trade, Business Population Estimates 2025
“UK Finance figures are point-in-time balances, so the well over £20 billion headline understates the much larger annual flow of invoices funded and repaid through these facilities. The Small Business Commissioner late payment figures cover all UK sectors and come from research commissioned by the Department for Business and Trade.”
What the numbers mean
Invoice finance is a significant source of working capital for UK businesses, with UK Finance members providing well over £20 billion to tens of thousands of client firms at any one time. The market divides broadly into two products: confidential invoice discounting, where the business keeps control of its sales ledger, and invoice factoring, where the finance provider manages collections.
It addresses a common problem. Businesses raise invoices well before they are paid, and the Small Business Commissioner estimates that UK businesses are owed around £26 billion in late payments at any given time, with 28% of businesses affected each year. Several UK Finance members state advance rates of up to 90% of invoice value, though each sets its own rate.
The Bank of England Bank Rate is 3.75%, unchanged since 18 December 2025. Providers set their own margin and fees, so ask for a written quote. The Department for Business and Trade counts about 5.7 million private sector businesses at the start of 2025, 99.85% of them SMEs with a combined turnover of £2.8 trillion. We do not have a published figure for how many of them use invoice finance, so we do not estimate penetration.
FAQs
How large 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.
How many UK businesses use invoice finance?
UK Finance says its invoice finance and asset-based lending members provide well over £20 billion to tens of thousands of UK client businesses at any one time. Its public page does not give an exact client count or a current split between discounting and factoring.
Which sectors use invoice finance the most in the UK?
Manufacturing receives the largest share of invoice finance advances, followed by wholesale and retail trade, transport and logistics, and recruitment. These sectors typically operate on extended payment terms and have high volumes of trade receivables, making them well suited to invoice finance facilities.
What is the typical advance rate on a UK invoice finance facility?
Each provider sets its own advance rate; several UK Finance members state up to 90% of the invoice value. The remaining balance, minus fees and charges, is released once the debtor pays. The exact rate depends on the quality and diversity of the debtor book.
Is invoice finance regulated in the UK?
Invoice finance provided to limited companies and partnerships is not regulated by the Financial Conduct Authority (FCA) in the same way as consumer credit. However, providers operating in the UK are subject to general commercial law, anti-money laundering regulations, and industry codes of practice overseen by UK Finance. Sole trader facilities may attract different regulatory treatment depending on the structure of the agreement.
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.
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