Invoice Finance Annual Report 2025

Invoice Finance Annual Analysis – 2025

Annual analysis of invoice finance debentures registered at Companies House for 2025. Headline growth of +3.7%, but after removing ABN/HSBC migrations the adjusted uplift was -1.2%, with a -1.5% net growth rate after attrition.

Published: January 2026 | Data to: 12 January 2026 | Source: Companies House | Contains public sector information licensed under the Open Government Licence v3.0

Headline Growth

+3.7%

uplift in IF debentures

Adjusted Growth

-1.2%

excl. ABN/HSBC migration

Net Growth

-1.5%

after attrition

Notable Mover

4SYTE

+173 charges (72 → 245)

Summary

2025 was a year of significant, and often unpredictable, change. Some lenders became brokers, others fundamentally altered broker commission structures, and the first acquisition of a technology lender by a challenger bank occurred.

On the surface, more new facilities were opened in 2025 than in 2024. However, this headline figure masks a concerning underlying trend. Two major customer migrations occurred: ABN restructured their ABL offering, resulting in significant refactoring, and HSBC transferred part of their smaller IF book to 4SYTE. Lloyds is also understood to be undertaking a similar exercise.

Net attrition is of greatest concern for traditional providers. Borrowers that would previously have used Invoice Finance are increasingly opting for alternative products, including business loans and trade/supplier finance solutions. The critical question is whether the industry will meaningfully embrace technology to reverse the trend.

Key Insights

  • 4SYTE grew dramatically — from 72 to 245 charges (+173), driven largely by the HSBC book transfer, representing the standout movement of 2025.
  • Apollo Business Finance surged — +70 charges to 214, with a 33% net growth rate, showing strong organic expansion.
  • Lloyds fell sharply — from 475 to 335 charges (-140), the largest absolute decline among major lenders.
  • Underlying market contracted — adjusted for migrations, the market fell 1.2%, with net growth of -1.5% after attrition.
  • Liquid Link strong — +24 charges to 65 with a remarkable 52% net growth rate among specialists.
JD

Jamie Davies

Spark Finance

January 2026

"Why is the number different from what I expected?"

There could be loads of reasons… we try to identify groups of companies based on location and dates of charge, but this can be inaccurate, we also ignore charges based on certain descriptions. But it's a minefield. So we expect some errors and omissions, it's a free report and I believe the kids now say 'DYOR'. We have been releasing these reports monthly for the last 2 years and, based on feedback from lenders who appear in this report, find we are always within ~5% of the "true number".

Lender Analysis

Growth rates, attrition, and book movement by lender for the full year 2025.

Banks

Bank lender IF charges – 2025 annual
Lender 2023 2024 2025 Var.
RBS Invoice Finance480269297+28
Lloyds Commercial Finance402475335-140
HSBC Invoice Finance215211277+66
Metro Bank IF707263-9
Investec Capital283642+6

Large Independents

Large independent lender IF charges – 2025 annual
Lender 2023 2024 2025 Var.
Bibby Finance578657679+22
eCapital Commercial Finance404410366-44
Close Brothers321343358+15
Skipton Business Finance209186183-3
Novuna187185166-19
Time Finance103110142+32
Ultimate Finance94102136+34
Cynergy Business Finance1219597+2
IGF384042+2
Praetura444021-19
Secure Trust Bank283033+3
Leumi ABL252832+4
Pulse Cashflow Finance211726+9
FGI Finance253-2

Mid-tier Independents

Mid-tier independent lender IF charges – 2025 annual
Lender 2023 2024 2025 Var.
Team Factors134181155-26
Apollo Business Finance160144214+70
Optimum SME Finance95125148+23
4SYTE4572245+173
Paragon Business Finance796288+26
Wedo Finance534740-7
Peak Cashflow474238-4
TP2426358-27
GRENKE163033+3
Castlebridge Finance282928-1
Sallyport Commercial Finance162835+7
Shire Invoice Finance232432+8
FI Capital121610-6
Partnership Invoice Finance131615-1
Flex ABL201420+6
Regency Factors35119-2
Simplicity Finance201126+15

Specialists

Specialist lender IF charges – 2025 annual
Lender 2023 2024 2025 Var.
Zodeq99157124-33
Quba Solutions92144147+3
Sonovate8813683-53
Liquid Link254165+24
Giant Finance281831+13

Debtor Book Analysis

Distribution of new IF charges by debtor book size for 2025. Shows how each lender segment serves different market tiers based on disclosed trade debtor values.

Banks

Bank debtor book analysis – 2025
Lender New Inc. Not Disc. 1–50k 50–100k 100–250k 250–500k 500k–1m £1m+ Total
RBS Invoice Finance2114810254349127297
Lloyds Commercial Finance5146291143564455335
HSBC Invoice Finance1416106102644151277
Metro Bank IF206348831163
Investec Capital233571442
Bank subtotal108855331911401543521,014

Large Independents

Large independent debtor book analysis – 2025
Lender New Inc. Not Disc. 1–50k 50–100k 100–250k 250–500k 500k–1m £1m+ Total
Bibby Finance131175594686695459679
eCapital Commercial Finance11284382437362213366
Close Brothers6547171443544969358
Skipton Business Finance403812636261510183
Novuna384415171915810166
Time Finance382717101915124142
Ultimate Finance212311520251417136
Cynergy Business Finance23171133183197
IGF62142342
Praetura5211221
Secure Trust Bank8581121733
Leumi ABL7411332
Pulse Cashflow Finance421781326
FGI Finance33
Large ind. subtotal4944721821272762581992762,284

Mid-tier Independents

Mid-tier independent debtor book analysis – 2025
Lender New Inc. Not Disc. 1–50k 50–100k 100–250k 250–500k 500k–1m £1m+ Total
Team Factors665123591155
Apollo Business Finance7685357731214
Optimum SME Finance36441710171374148
4SYTE154127226646217245
Paragon Business Finance20141371368788
Wedo Finance1564411940
Peak Cashflow127836238
TP2412418
GRENKE31253621133
Castlebridge Finance98424128
Sallyport Commercial Finance1310315335
Shire Invoice Finance52051132
FI Capital13212110
Partnership Invoice Finance53122215
Simplicity Finance7116226
Mid-tier subtotal283313150651448447301,116

Specialists

Specialist debtor book analysis – 2025
Lender New Inc. Not Disc. 1–50k 50–100k 100–250k 250–500k 500k–1m £1m+ Total
Zodeq57311685223124
Quba Solutions1032711321147
Sonovate2226171353683
Liquid Link282691165
Giant Finance1910231
Specialist subtotal229120531511859450

Refactoring Channels

Where borrowers moved when switching lender in 2025. The table below shows the top recipients of refactored facilities and their primary source providers. The two major migration events — ABN restructuring and the HSBC/4SYTE transfer — are clearly visible.

Lloyds was the largest refactoring source, with 259 facilities leaving for competitors — significantly higher than any other lender. This aligns with the understood book restructuring exercise, with Bibby Finance (57), Close Brothers (23), and HSBC (15) among the main beneficiaries.

Bibby Finance was the top destination, absorbing 129 refactored clients, drawn from a broad spread of competitors. 4SYTE received 77 refactored facilities, the majority (43) sourced from the HSBC book transfer.

Close Brothers attracted 81 facilities from 20 different providers, while eCapital received 77 — indicating both lenders are well-distributed refactoring channels rather than reliant on a single source.

Top Refactoring Recipients – 2025

Top refactoring recipients by source – 2025
New Provider Total In Largest Source From
Bibby Finance129Lloyds57
Close Brothers81Lloyds23
eCapital Commercial Finance77Lloyds22
4SYTE77HSBC43
HSBC Invoice Finance64RBS15
Novuna53Lloyds24
RBS Invoice Finance48Lloyds12
Lloyds Commercial Finance50Bibby9
Skipton Business Finance41Lloyds17
Time Finance31Lloyds10
Ultimate Finance31Bibby8
Optimum SME Finance31Lloyds5

Top Refactoring Sources – 2025

Largest sources of refactored facilities – 2025
Old Provider Total Out Largest Destination To
Lloyds Commercial Finance259Bibby Finance57
HSBC Invoice Finance1094SYTE43
Bibby Finance98eCapital13
Skipton Business Finance73Bibby8
Close Brothers58Bibby9
Novuna44Lloyds7
eCapital Commercial Finance34eCapital (internal)6
RBS Invoice Finance28HSBC15

Debtor Size Leaders

Top lenders by debtor book size band for new charges in 2025. Shows which providers dominate at each end of the market.

New Incorporations

  1. 1. Bibby Finance – 131
  2. 2. eCapital – 112
  3. 3. Quba Solutions – 103
  4. 4. Apollo Business Finance – 76
  5. 5. Team Factors – 66

£100–250k Debtors

  1. 1. Bibby Finance – 86
  2. 2. 4SYTE – 66
  3. 3. Close Brothers – 43
  4. 4. Lloyds Commercial Finance – 43
  5. 5. eCapital – 37

£500k–£1m Debtors

  1. 1. Bibby Finance – 54
  2. 2. RBS Invoice Finance – 49
  3. 3. Close Brothers – 49
  4. 4. HSBC Invoice Finance – 44
  5. 5. Lloyds Commercial Finance – 44

£1m+ Debtors

  1. 1. HSBC Invoice Finance – 151
  2. 2. RBS Invoice Finance – 127
  3. 3. Close Brothers – 69
  4. 4. Bibby Finance – 59
  5. 5. Lloyds Commercial Finance – 55

Access the Full Report

Have questions about the analysis, want bespoke data cuts, or need lender-level research for your organisation? Get in touch with the Spark team.

Contact the Spark Team

Methodology

This analysis uses AI-driven classification to identify invoice finance charges registered at Companies House. Charges are matched based on the charge-holder name or a combination of the name and the nature of the charge description.

For some lenders (e.g. Barclays, Santander), it is not feasible to produce a strong enough pattern to reliably match charges to IF. Where a group of companies has a charge, this is counted as one event. Multiple charges registered by the same company within the reporting period are not counted separately. Refactors are based on IF charges where a previous IF charge was satisfied within 100 days of the new charge or was left open.

Growth Rate is calculated as new charges divided by opening unsatisfied charges at 1 January 2025. Attrition Rate is satisfied charges plus insolvencies divided by the same opening number. Net Growth Rate is Growth Rate minus Attrition Rate.

Read the full methodology →  |  Definitions →

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