Irish businesses availed of less invoice financing in the first quarter of the year, despite a rise in the total amount available.
New figures from Banking and Payments Federation Ireland (BPFI) showed a total of €1.3 billion was advanced to companies over the period, down 1.4 per cent compared with the same period in 2025. However, the overall amount available to businesses through the alternative funding method rose 1.9 per cent to €3 billion.
Invoice financing is a form of working capital or revolving credit facility. Businesses can use it to get immediate access to cash, typically unlocking between 85 and 95 per cent of cash that is tied up in unpaid invoices from their customers through working with finance providers.
The latest figures show the average funds advanced per client business neared €1 million at the end of March, remaining stable year on year. Client sales were more than €9.5 billion for the quarter.
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“As the sales ledger is used to secure access to funds, growth in client sales can help support greater availability of finance,” said Brian Hayes, chief executive of BPFI.
Debtor days were also down, falling marginally from an average of 45 days to 43 year on year. That suggested client customers were paying their invoices more quickly.
Hayes said the figures indicated invoice finance was providing important working capital support to Irish businesses, covering sectors such as manufacturing, agriculture, transport and logistics, services and recruitment.
“These figures underline the practical role invoice finance can play for businesses managing the timing gap between issuing invoices and receiving payment,” he said.
“For firms with strong sales that want to expand or enhance their working capital, it can provide flexible funding that moves in line with their customer invoices.”
