The UK invoice financing and factoring market reached a record £40.2 billion in total advances during 2025, according to new data from UK Finance, with fintech lenders capturing 18 per cent of originations — up from 11 per cent in 2023. The figures underscore a structural shift in one of the oldest forms of business lending, as digital-first platforms including MarketFinance, Satago, and Kriya use automated data analysis and open banking connections to offer faster, more transparent invoice discounting to SMEs traditionally shut out of the market.

MarketFinance CEO Anil Sherwood said the growth reflects both supply-side innovation and demand-side necessity. "Late payment culture in the UK remains endemic — the average SME is now owed £36,000 in overdue invoices at any given time," Sherwood said. "Fintech invoice finance platforms are growing because we can approve a facility in hours using Companies House, HMRC, and open banking data, whereas a traditional factor might take six to eight weeks." MarketFinance alone processed £1.8 billion in invoice advances during 2025, making it one of the UK's largest independent invoice finance providers.

The sector's growth has attracted attention from regulators and policymakers. The FCA is currently reviewing the invoice financing market as part of its broader commercial lending review, with particular focus on the treatment of assignment notices and the transparency of fee structures. Meanwhile, the British Business Bank has expanded its ENABLE Funding programme, which provides wholesale lending facilities to fintech invoice financiers, by an additional £200 million, bringing total commitments under the scheme to £1.1 billion since its inception.