Invoice finance accessed by firms rises to €1.2bn

Invoice finance is a working capital or revolving credit facility, used by SMEs and larger businesses to release cash tied up in outstanding customer invoices

The average number of debtor days outstanding rose from 40 to 42 days.

Banks advanced more than €1.2bn to businesses in the final quarter of 2025 through invoice finance.

New data from the Banking & Payments Federation Ireland (BPFI) shows the figure is a 1.6% rise on the same period in 2024. The increase comes despite a 3.3% fall in the number of firms using these facilities, which declined to 1,351 at the end of December. 

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. 

BPFI said the total funds available to businesses rose by 9.5% year-on-year, reaching almost €3bn. The average funds advanced per client business increased slightly from less than €0.9m to more than €0.9m.

Brian Hayes, chief executive of BPFI, said the rise in the overall funds available to businesses shows the continued demand for this type of finance. 

"Our members are seeing take-up across a broad range of sectors, particularly manufacturing, agriculture, transport and logistics, services and recruitment," he said.

"It is also worth noting that total client sales increased by 3% year-on-year to almost €11.7bn in Q4 2025. As the sales ledger is used to secure access to funds, business growth can, in turn, support greater availability of finance. 

"At the same time, the rise in debtor days, from an average of 40 to 42 days year-on-year, may increase demand for working capital support. 

"These latest figures highlight the continued importance of invoice finance as a source of working capital for SMEs and larger companies across the Irish economy. By enabling firms to release funds tied up in unpaid invoices, it can play a valuable role in supporting cash flow, liquidity and growth," Mr Hayes said.