UK Wholesale and Distribution Sector Invoice Finance Statistics 2026
Wholesale and distribution firms make up over a tenth of UK businesses and carry some of the longest payment cycles in the economy. With advances across the invoice finance market at £22.7bn in 2024, base rate at 3.75%, and wholesale and retail trade among the sectors with the highest company insolvency counts, cash flow pressure in this sector remains significant.
Key statistics
Total UK invoice finance and asset-based finance advances to businesses, 2024. Source: UK Finance
UK businesses using invoice finance or asset-based lending, end of 2024. Source: UK Finance
Advances to the recruitment sector, the largest single sector for invoice finance in 2024. Source: UK Finance
Share of all UK businesses classified as wholesale and retail trade, 2025. Source: Department for Business and Trade, Business Population Estimates 2025
Share of UK private sector SME employment accounted for by wholesale and retail trade, 2025. Source: Department for Business and Trade, Business Population Estimates 2025
Total UK private sector businesses at the start of 2025. Source: Department for Business and Trade, Business Population Estimates 2025
Wholesale and retail trade (including motor vehicle repair) growth contribution, among the largest positive sector contributors to UK GDP. Source: Office for National Statistics, GDP monthly estimate
Wholesale and retail trade company insolvencies in England and Wales, 12 months to July 2026. Source: The Insolvency Service
Share of company insolvencies with industry recorded that were in wholesale and retail trade, 12 months to July 2026. Source: The Insolvency Service
Wholesale and retail trade company insolvencies, Q2 2026 (April to June). Source: The Insolvency Service
Wholesale and retail trade company insolvencies recorded in August 2026. Source: The Insolvency Service
UK invoices paid late across the economy, 2024. Source: Federation of Small Businesses (FSB)
Bank of England base rate, unchanged since 18 December 2025. Source: Bank of England
| Metric | Value | Source |
|---|---|---|
| Total UK invoice finance and asset-based finance advances to businesses, 2024 | £22.7bn | UK Finance |
| UK businesses using invoice finance or asset-based lending, end of 2024 | 40,100 | UK Finance |
| Advances to the recruitment sector, the largest single sector for invoice finance in 2024 | £8.2bn | UK Finance |
| Share of all UK businesses classified as wholesale and retail trade, 2025 | 10.2% | Department for Business and Trade, Business Population Estimates 2025 |
| Share of UK private sector SME employment accounted for by wholesale and retail trade, 2025 | 14% | Department for Business and Trade, Business Population Estimates 2025 |
| Total UK private sector businesses at the start of 2025 | 5.5 million | Department for Business and Trade, Business Population Estimates 2025 |
| Wholesale and retail trade (including motor vehicle repair) growth contribution, among the largest positive sector contributors to UK GDP | +2.3% | Office for National Statistics, GDP monthly estimate |
| Wholesale and retail trade company insolvencies in England and Wales, 12 months to July 2026 | 3,422 | The Insolvency Service |
| Share of company insolvencies with industry recorded that were in wholesale and retail trade, 12 months to July 2026 | 15% | The Insolvency Service |
| Wholesale and retail trade company insolvencies, Q2 2026 (April to June) | 885 | The Insolvency Service |
| Wholesale and retail trade company insolvencies recorded in August 2026 | 290 | The Insolvency Service |
| UK invoices paid late across the economy, 2024 | 52% | Federation of Small Businesses (FSB) |
| Bank of England base rate, unchanged since 18 December 2025 | 3.75% | Bank of England |
Source: UK Finance, Department for Business and Trade, Business Population Estimates 2025, Office for National Statistics, GDP monthly estimate, The Insolvency Service, Federation of Small Businesses (FSB), Bank of England
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### UK Wholesale and Distribution Sector Invoice Finance Statistics 2026: key figures | Metric | Value | Source | | --- | --- | --- | | Total UK invoice finance and asset-based finance advances to businesses, 2024 | £22.7bn | UK Finance | | UK businesses using invoice finance or asset-based lending, end of 2024 | 40,100 | UK Finance | | Advances to the recruitment sector, the largest single sector for invoice finance in 2024 | £8.2bn | UK Finance | | Share of all UK businesses classified as wholesale and retail trade, 2025 | 10.2% | Department for Business and Trade, Business Population Estimates 2025 | | Share of UK private sector SME employment accounted for by wholesale and retail trade, 2025 | 14% | Department for Business and Trade, Business Population Estimates 2025 | | Total UK private sector businesses at the start of 2025 | 5.5 million | Department for Business and Trade, Business Population Estimates 2025 | | Wholesale and retail trade (including motor vehicle repair) growth contribution, among the largest positive sector contributors to UK GDP | +2.3% | Office for National Statistics, GDP monthly estimate | | Wholesale and retail trade company insolvencies in England and Wales, 12 months to July 2026 | 3,422 | The Insolvency Service | | Share of company insolvencies with industry recorded that were in wholesale and retail trade, 12 months to July 2026 | 15% | The Insolvency Service | | Wholesale and retail trade company insolvencies, Q2 2026 (April to June) | 885 | The Insolvency Service | | Wholesale and retail trade company insolvencies recorded in August 2026 | 290 | The Insolvency Service | | UK invoices paid late across the economy, 2024 | 52% | Federation of Small Businesses (FSB) | | Bank of England base rate, unchanged since 18 December 2025 | 3.75% | Bank of England | Source: UK Finance, Department for Business and Trade, Business Population Estimates 2025, Office for National Statistics, GDP monthly estimate, The Insolvency Service, Federation of Small Businesses (FSB), Bank of England
“Official data from the Insolvency Service, ONS and the Department for Business and Trade reports wholesale and retail trade as a single combined sector, so figures here cannot be split cleanly between wholesale and distribution and consumer-facing retail. UK Finance's own sector breakdown for invoice finance advances does not publish an exact wholesale-only percentage of the £22.7bn total, so its position among the largest sectors is a relative ranking, not a precise share.”
What the numbers mean
Wholesale and distribution businesses buy in bulk, hold stock, and typically sell on 30 to 90 day terms to retailers, tradespeople or other businesses. That gap between paying suppliers and collecting from customers is precisely the gap invoice finance is built to bridge, which is why UK Finance data consistently places wholesale and distribution among the heaviest users of the £22.7bn advanced across the invoice finance and asset-based finance market in 2024, behind only sectors like recruitment and manufacturing with similarly long working capital cycles.
The insolvency figures matter for a different reason. Wholesale and retail trade recorded 3,422 company insolvencies in the 12 months to July 2026, the second highest count of any UK sector after construction, at 15% of all insolvencies where an industry was recorded.
For a distribution business, that risk sits with customers as much as with the business itself: a key debtor going under can leave invoices unpaid regardless of how well the business itself is run. With Bank of England base rate holding at 3.75% since March 2026, the cost of bridging that gap through invoice finance, and the cost of a bad debt if a customer fails, both remain live considerations for anyone selling on credit terms in this sector.
FAQs
Why is invoice finance particularly common in wholesale and distribution?
Wholesale and distribution businesses typically pay suppliers quickly but wait 30 to 90 days to be paid by customers, while also tying up cash in stock. Invoice finance releases cash against unpaid invoices as soon as they are raised, closing that gap without waiting for the customer's payment terms to run their course.
Does a wholesale or distribution business need a large turnover to use invoice finance?
No. Invoice finance is available to businesses of most sizes, as facilities scale with the value of invoices raised. UK Finance data shows over 40,000 UK businesses used invoice finance or asset-based lending in 2024, spanning small and mid-sized firms as well as larger companies.
How does a customer's insolvency risk affect invoice finance for distributors?
Most invoice finance facilities can include bad debt protection, which covers the business if a customer becomes insolvent and cannot pay. Given that wholesale and retail trade recorded 3,422 company insolvencies in the 12 months to July 2026, this cover is a material consideration for distributors extending credit terms to trade customers.
Does the Bank of England base rate affect the cost of invoice finance?
Yes. Invoice finance charges are typically priced as a margin over Bank of England base rate, currently 3.75% since 18 December 2025, plus a service fee. When base rate holds steady, as it has done since March 2026, the borrowing cost of existing facilities tends to be more predictable.
What is the difference between invoice factoring and invoice discounting for a distribution business?
Factoring includes credit control and collections carried out by the finance provider, which suits distributors without an in-house credit team. Invoice discounting keeps collections in-house and is typically used by larger, more established distribution businesses that want to keep the facility confidential from customers.
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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