– Banking & Payments Federation Ireland (BPFI) has today published new data showing strong growth in invoice finance, with the level of funds advanced by lenders to businesses, increasing by 8.4% year‑on‑year in Q3 2025 to almost €1.5 billion. This was despite a slight decline in the number of firms availing of these facilities, which dropped by 1.2% to 1,357. Invoice finance is a working capital or revolving credit facility, used by both SMEs and larger businesses, to release cash tied up in outstanding customer invoices.
The following are the key figures from the report:
Funds advanced
- There was almost €1.5 billion advanced by participating lenders to client businesses in Q3 2025, an increase of 8.4% year on year.
Funds available
- The total funds available to businesses rose by 6.4%, reaching nearly €3.1 billion.
Total client sales
- There was €11.1 billion in total client sales, a 9.2% increase year on year.
Average number of debtor days
- The average number of debtor days outstanding rose from 42 days to 45 days.
Commenting on today’s figures, Brian Hayes, Chief Executive, BPFI said: "We are pleased to publish our new report on invoice finance today, which demonstrates that this form of lending is an important source of working capital for companies seeking to manage cashflow and grow their business. Invoice finance is used by a wide range of SMEs and larger businesses, and our members are seeing particular take up from companies in areas such as manufacturing, agriculture, transportation and logistics, service and recruitment.”
“There was almost €1.5 billion advanced by participating lenders to client businesses in Q3 2025, an increase of 8.4% year on year. At the same time, the total funds available to businesses rose by 6.4%, reaching nearly €3.1 billion. A gap naturally exists between what is advanced and what is available as businesses seldom need to draw the full amount at once, with usage fluctuating depending on trading activity, cashflow requirements and the timing of customer payments.”
Mr Hayes added:
“It’s interesting to note that total client sales in Q3 2025 increased by 9.2% between Q3 2024 and Q3 2025 to €11.1 billion. The sales ledger is used to secure access to funds, so as the business grows, so does the amount of funds that can be made available. On the other hand, the rise in debtor days, up from an average of 42 to 45 days year on year in Q3 2025, could lead to an increase in demand for working capital.”
He concluded:
“Overall, the increased value of funds advanced, combined with rising sales volumes, highlights the continued relevance of invoice finance as an important source of working capital for businesses of all sizes.”
