Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.5 % over the past five years, to reach an estimated £4.0bn in 2024.
Trends and Insights
Businesses looking for liquidity amid tough economic conditions support demand for factoring companies
- SME’s have struggled in recent years, contending with a litany of challenges ranging from the cost of living crisis and geopolitical tensions following the invasion of Ukraine in February 2022.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Recovering economic conditions position factoring for solid growth
- According to OECD, the UK growth outlook for GDP in 2025 is 1.2%, improving on estimated growth of 0.4% in 2025 made in May 2024. As cash flow improves, this will lift expansionary activities and aid demand for factoring services. However, declining interest rates will intensify price competition among factoring companies, leading to more favourable terms for businesses and pricing out smaller players that can’t afford to narrow margins.
Biggest companies in the Factoring in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
RBS Invoice Financing Ltd | 280.6 | |
HSBC Invoice Finance (UK) Ltd | 213.7 | |
Bibby Financial Services Ltd | 109.6 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Domestic factoring, Domestic invoice discounting and Asset-based loans. Domestic factoring is the largest segment of the Factoring in the UK.
Trends and Insights
Domestic factoring benefits from recovering SMEs
- Factoring involves a business selling its accounts receivable (the invoices that its debtors are yet to pay) to a third party at a discount in return for the immediate receipt of money.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Firms in this industry specialise in short-term debt financing and invoice discounting. Factoring involves a company selling its accounts’ receivables or invoices to a third party as a means of accessing cash to finance further business activity without having to wait for their debtors to pay them. Factoring companies generate revenue through factor fees, or the difference between the price paid for the invoice and money received from debtors.
What's included in this industry?
Domestic factoringDomestic invoice discountingAsset-based loansExport and import invoice discountingExport and import invoice factoringCompanies
RBS Invoice Financing LtdHSBC Invoice Finance (UK) Ltd Bibby Financial Services LtdPurchase this report to view all 4 major companies in this industry.
Related Terms
ASSET-BASED LENDINGINVOICE DISCOUNTINGNET INTEREST MARGINCROWDFUNDINGLIBORIndustry Code
SIC 64.99/2 - Factoring in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Lenient regulation supports demand for factoring. Lower compliance and legal costs allow factoring companies to offer competitive rates, attracting small businesses and start...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Downstream trends alter the industry’s market mix. The growing need for alternative SME funding has upped service sector demand, while consolidation has reduced the wholesale...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Being near employment agencies benefits factoring companies. These companies are big users of factoring services, using them to pay workers immediately while waiting for clie...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Alternative financing draws away demand. The growing presence of alternative credit providers like peer-to-peer lenders and crowdfunding platforms forces factoring companies ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
HSBC's size and strong online presence keep it on top. As part of a leading global institution, the company benefits from its parent company's extensive resources, while migr...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of RBS Invoice Financing Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of HSBC Invoice Finance (UK) Ltd 's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bibby Financial Services Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for RBS Invoice Financing Ltd, and factors influencing its performance in the industry
- Description and key data for HSBC Invoice Finance (UK) Ltd , and factors influencing its performance in the industry
- Description and key data for Bibby Financial Services Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Factoring companies have to keep a close eye on data protection. They’re required to ensure customers' privacy and safeguard their data, for both individual and corporate inv...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Interest costs are high but more significant for smaller firms. The larger companies can mitigate interest costs by vertically integrating, diversifying their funding sources...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Factoring in the UK industry in United Kingdom in 2024?
The market size of the Factoring in the UK industry in United Kingdom is £4.0bn in 2024.
How many businesses are there in the Factoring in the UK industry in 2024?
There are 102 businesses in the Factoring in the UK industry in United Kingdom, which has grown at a CAGR of 3.5 % between 2019 and 2024.
Has the Factoring in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Factoring in the UK industry in United Kingdom has been growing at a CAGR of 3.5 % between 2019 and 2024.
What is the forecast growth of the Factoring in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Factoring in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Factoring in the UK market in United Kingdom?
The biggest companies operating in the Factoring market in United Kingdom are RBS Invoice Financing Ltd, HSBC Invoice Finance (UK) Ltd and Bibby Financial Services Ltd
What does the Factoring in the UK in United Kingdom include?
Domestic factoring and Domestic invoice discounting are part of the Factoring in the UK industry.
Which companies have the highest market share in the Factoring in the UK in United Kingdom?
The company holding the most market share in United Kingdom is RBS Invoice Financing Ltd.
How competitive is the Factoring in the UK industry in United Kingdom?
The level of competition is high and increasing in the Factoring in the UK industry in United Kingdom.
Related Industries
Widen your competitive advantage with related industries
Competitors
- Banks in the UK
- Building Societies in the UK
- Non-Depository Financing in the UK
Complementors
- Debt Collection Agencies in the UK
International industries
- Invoice Factoring in the US
- Debt Collection in Australia
- Credit Reporting and Debt Collection Services in New Zealand
View all industries in United Kingdom
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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