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• 01 Sep

  Why Is Awareness Of Invoice Finance Falling

  Why Is Awareness of Invoice Finance Falling?

  Back in 2016, we ran a piece of research to understand how many UK businesses were aware of invoice finance (also known as factoring or invoice discounting). At the time, 32% of respondents reported being unaware of these forms of funding.

  Nine years later, we repeated the same question in our 2025 survey of 200 UK business owners. The results were surprising, as the level of awareness had dropped even lower.

  

  Awareness Has Dropped

  In our latest findings:

  • 59% of respondents said they had never heard of invoice finance

  That’s a significant increase in unawareness, up 27 percentage points since 2016. Despite invoice finance being a well-established product, awareness appears to have declined rather than improved.

  Why Does This Matter?

  Invoice finance can provide a practical solution for businesses experiencing cash flow problems or facing delayed customer payments. It allows companies to release money tied up in unpaid invoices quickly and flexibly. Yet, the data shows that fewer businesses are even aware of it.

  This decline matters because:

  • Many businesses are missing out on a funding option that could help them grow or stay afloat
  • Limited awareness means fewer SMEs get to compare or understand their full range of financing options
  • Once explained, 83% of respondents in our 2025 survey said they would recommend invoice finance for cash flow issues

  So What’s Causing the Drop?

  There could be several reasons:

  • Less direct promotion by providers and banks. Several providers have withdrawn from offering these services or specific product options
  • Fewer educational resources may be being shared across the market
  • Confusion among business owners about modern funding terminology
  • An increasing focus on shorter-term solutions, such as small business loans often offered by fintechs, may be drawing attention away from longer-term revolving finance tools

  It might also reflect a shift in who is brokering invoice finance. While the number of brokers may have increased, many are now former salespeople from finance companies who focus on lead generation, rather than market education.

  At FundInvoice, we believe in doing more than just brokering deals. We actively research, publish, and share insights to help more businesses understand these options.

  What Needs to Happen Now

  We think it's time for a renewed and more focused approach to raising awareness:

  • Trade bodies such as UK Finance can continue to play a role in educating the market, not only through publications but via public campaigns focused on raising awareness
  • Government business support platforms, such as the British Business Bank, could increase the visibility of invoice finance within their core educational material
  • Industry-wide initiatives could introduce "Invoice Finance Awareness Week", or something similar to engage the press, social media, and business networks in focused education
  • Lenders and brokers could collaborate to produce free online tools (e.g. eligibility checkers, explainer videos, case study databases) that demystify these products
  • Schools, colleges, and business incubators could be encouraged to include commercial finance basics, including invoice finance, in financial literacy and entrepreneurship programmes
  • Professional advisors (accountants, consultants, business mentors) should be better informed and equipped to recommend it when appropriate

  How FundInvoice Is Helping

  We continue to publish original research and to monitor changes in market understanding. We offer free, independent support to any business seeking to determine whether invoice finance is a suitable option for them.

  If you missed our full 2025 research, you can read the survey findings here.

  If you're interested in exploring invoice finance for your business, visit our invoice finance page or request a free quote comparison.

  COMPARE QUOTES NOW

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  Sources: FundInvoice LLP Invoice Finance Awareness Research (2016 and 2025)

  By Glenn Blackman