Barclays vs NatWest Invoice Finance

Neither Barclays nor NatWest offers invoice factoring any more; both offer confidential invoice discounting. Barclays transferred its factoring portfolio to 4Syte in February 2021 and now advertises discounting of up to 90% of approved invoices, with no published minimum turnover. NatWest advertises invoice discounting from £300,000 turnover, also up to 90%. If you want the lender to collect your debts, the choice is among the independents (Close Brothers for a bank-backed facility, Bibby for sector specialism, Ultimate Finance for up to 95% advance).

For Barclays' corporate invoice finance route, current eligibility and rates, see our full Barclays invoice finance review.

What this page covers

This page covers

Current status of Barclays and NatWest invoice finance in 2026, alternatives for SMEs, and head-to-head comparison where applicable

Not covered here

Detailed Barclays history (see /blog/did-barclays-stop-invoice-finance/), Lloyds invoice finance status (see /blog/is-lloyds-still-doing-invoice-finance/)

Current status (checked September 2026)

FeatureBarclaysNatWest
Factoring (lender collects debts)No (book transferred to 4Syte, 2021)Not listed
Confidential discountingYesYes
Min turnoverNot published£300k
Service chargeNot published (on application)Not published
Advance rateUp to 90%Up to 90%
Setup speedNot publishedNot published
Asset-based lendingYes (corporate banking)Yes, from £6.5m turnover

Recommended Alternatives for UK SMEs

If you want factoring, or you are below NatWest's £300,000 minimum and want published pricing, these independents are the usual shortlist:

ProviderFromMin TurnoverSetupBest For
Close BrothersNot publishedNot confirmed5 working daysIndividually priced
BibbyNot publishedNot published5 working daysSector specialism
Ultimate FinanceNot publishedNot publishedWithin 1 weekSpeed + 95% advance
SkiptonNot published£100k5 working daysTransparent pricing, no PG
AldermoreNot published£750kNot publishedLarger businesses, up to 90% advance

For more on Barclays' 2021 factoring exit, see our deep dive on what happened. For Lloyds invoice finance status, see our Lloyds explainer.

AP

Adam Parker

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.

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Barclays vs NatWest Invoice Finance, FAQ

Did Barclays stop offering invoice finance?

Not entirely. In February 2021 Barclays agreed to transfer its factoring portfolio to 4Syte, an independent factoring firm, so it no longer runs disclosed factoring. It still offers confidential invoice discounting: its business site says you could receive up to 90% of approved invoices, with fees subject to application and no published minimum turnover.

Does NatWest still offer invoice finance?

Yes, but as invoice discounting rather than factoring. NatWest's invoice finance page lists invoice discounting (minimum turnover £300,000, up to 90% of what you are owed, and you collect your own debts) and asset based lending (minimum turnover £6.5m). It does not list a factoring product where NatWest collects the debts.

What should I use if Barclays doesn't offer factoring?

If you bank with Barclays and need invoice finance, the leading alternatives are Close Brothers (individually priced, around 5 working days to set up), Bibby Financial Services (sector specialists, day-one startups), Ultimate Finance (setup within one week, up to 95% advance) and Aldermore (up to 90% advance, £750,000 minimum turnover on its own site). All accept Barclays banking customers.

Is NatWest cheaper than other UK invoice finance providers?

NatWest does not publish its fees, so it can only be compared on a quote. Skipton quotes its rate per facility. Neither bank publishes a setup time; the independents in the table above typically quote around 5 working days.

Which is better for UK SMEs in 2026?

It depends on whether you want factoring. Neither bank offers it now, so if you want the provider to run your credit control, look at Close Brothers, Bibby, Ultimate Finance or Skipton. For confidential discounting, NatWest publishes a £300,000 minimum while Barclays publishes none, so an existing banking relationship usually decides it. For micro-businesses under £100k turnover, look at Triver or Hydr, or Sonovate if you are a recruitment agency.