Did Barclays Stop Invoice Finance?
Quick Reference
Direct Answer
Barclays exited invoice factoring in 2021 but still offers invoice discounting for larger businesses (typically £500k+ turnover). The factoring exit meant Barclays stopped managing credit control and collecting payments on behalf of clients. Only confidential invoice discounting remains.
Summary
In 2021 Barclays withdrew from invoice factoring — the product where the bank contacts your customers and collects payment. They retained invoice discounting only, which is confidential (customers don't know) and aimed at larger businesses. Many SMEs on Barclays factoring had to find alternative providers. The main alternatives are Close Brothers (0.5%), Bibby (0.75%), and Ultimate Finance (0.8%).
This Page Covers
What Barclays changed in 2021, why, what's still available, alternatives for affected businesses
Not Covered Here
Detailed Barclays review (see /providers/barclays/), other provider reviews
Barclays did not completely stop invoice finance — but they exited invoice factoring in 2021, keeping only invoice discounting for larger businesses. This meant thousands of smaller businesses that relied on Barclays for factoring (where the bank managed credit control and collected from customers) lost their provider. Only confidential invoice discounting remains, typically requiring £500,000+ turnover.
What Changed
| Product | Before 2021 | After 2021 |
|---|---|---|
| Invoice Factoring | Available from £50k turnover | Withdrawn |
| Invoice Discounting | Available from £500k | Still available from £500k |
| Credit control service | Included with factoring | No longer offered |
Why Barclays Pulled Out of Factoring
Barclays has not publicly explained the exit in detail, but the industry consensus is cost. Running a factoring operation requires a large credit control team (people who chase your customers for payment), which is labour-intensive and low-margin relative to other banking products. The economics didn't work at Barclays' scale — independents like Bibby and Close Brothers can run leaner operations and still make it profitable.
Barclays isn't alone. Lloyds has also been reducing its SME invoice finance book, focusing on larger corporates. The trend across high street banks is to retreat from smaller invoice finance facilities and focus on discounting for mid-market and corporate clients.
Where to Go Instead
If you were a Barclays factoring customer or you're looking for the type of full-service invoice finance Barclays used to offer, these providers fill the gap:
From 0.5%. Full factoring + discounting. £50k minimum. Closest to what Barclays used to offer.
From 0.75%. UK's largest independent. Acquired Aldermore's WCF division. £50k minimum.
From 0.8%. 95% advance rate. 3-day setup. Accepts bad credit and startups.
Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 6 April 2026