Did Barclays Stop Invoice Finance?
Barclays exited invoice factoring in 2021 but still offers invoice discounting for larger businesses (Barclays publishes no minimum turnover). The factoring exit meant Barclays stopped managing credit control and collecting payments on behalf of clients. Only confidential invoice discounting remains. More detail + scope
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; Barclays publishes no minimum turnover for it.
For Barclays' current invoice discounting rates, eligibility and how it compares in 2026, see our full Barclays invoice finance review.
What Changed
| Product | Before 2021 | After 2021 |
|---|---|---|
| Invoice Factoring | Available from £50k turnover | Withdrawn |
| Invoice Discounting | Available from £500k | Still available (no published minimum) |
| 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.
Other high street banks have not all followed. Lloyds still publishes a minimum turnover of £100,000 a year for invoice finance and NatWest £300,000, while HSBC's published minimum is £1m.
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:
Individually priced. Full factoring + discounting. £750k minimum. Closest to what Barclays used to offer.
No published starting rate or minimum turnover. UK's largest independent. Acquired Aldermore's WCF division.
No published starting rate. Up to 95% advance rate. Setup within one week. Accepts bad credit and startups.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
Published · Updated