Barclays vs NatWest Invoice Finance

Barclays exited standalone invoice factoring in 2021 and now refers SME factoring requests to specialist providers. NatWest Invoice Finance remains an active UK provider, targeting £250,000+ turnover businesses. For UK SMEs needing invoice finance in 2026, the practical comparison is not Barclays vs NatWest but NatWest vs the leading independents (Close Brothers from 0.5%, Bibby for sector specialism, Ultimate Finance for 3-day setup).

Quick Reference

Direct Answer

Barclays exited standalone invoice factoring in 2021. NatWest Invoice Finance is still active, targeting £250k+ turnover. The practical 2026 question for SMEs is not Barclays vs NatWest but NatWest vs Close Brothers, Bibby, Ultimate Finance, and the other leading independents.

Summary

Barclays no longer offers standalone invoice factoring (exited 2021). NatWest Invoice Finance remains active, part of NatWest Group, targeting £250k+ businesses. For SME invoice finance, both bank options are now limited; independents (Close Brothers, Bibby, Ultimate Finance, Skipton, IGF) lead the under-£500k segment with lower rates and faster setup.

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 (Q2 2026)

Feature	Barclays	NatWest
Standalone factoring	No (exited 2021)	Yes
Confidential discounting	Limited (corporate only)	Yes
Min turnover	£1m+ (corporate ABL)	£250k typical
Service charge	N/A for SME	~0.7-1.5%
Advance rate	N/A for SME	Up to 90%
Setup speed	N/A for SME	10-15 days
Asset-based lending	Yes (corporate)	Yes
Established (current form)	1690 (bank), exited factoring 2021	1968
SME factoring referral	Refers to specialists	In-house

Recommended Alternatives for UK SMEs

Given Barclays' 2021 exit and NatWest's £250k+ minimum and 10-15 day setup, most SMEs are better served by independents:

Provider	From	Min Turnover	Setup	Best For
Close Brothers	0.5%	£50k	5 days	Lowest cost
Bibby	0.75%	£50k	5 days	Sector specialism
Ultimate Finance	0.8%	£50k	3 days	Speed + 95% advance
Skipton	0.5%	£100k	7 days	Transparent pricing, no PG
Aldermore	0.7%	£250k	7 days	Challenger bank backing

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

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: 26 April 2026

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Barclays vs NatWest Invoice Finance, FAQ

Did Barclays stop offering invoice finance?

Barclays exited the standalone invoice factoring market in 2021. Barclays still offers some asset-based lending and supply chain finance to corporate clients, but for SME invoice factoring and discounting, Barclays now refers to specialist providers. NatWest Invoice Finance remains an active UK provider.

Does NatWest still offer invoice finance?

Yes. NatWest Invoice Finance is an active UK provider, part of NatWest Group, established 1968 in its current form. NatWest typically targets £250,000+ turnover businesses with confidential invoice discounting and selective factoring.

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 (from 0.5%, 5-day setup, £50k minimum), Bibby Financial Services (sector specialists, day-one startups), Ultimate Finance (3-day setup, 95% advance) and Aldermore (challenger bank, £250k+). All accept Barclays banking customers.

Is NatWest cheaper than other UK invoice finance providers?

NatWest's typical service charge is around 0.7-1.5% for £250k+ facilities, comparable to other high street banks. For lower headline rates, Close Brothers and Skipton both start from 0.5%. Independent providers also offer faster setup (4-5 days vs NatWest's typical 10+ days).

Which is better for UK SMEs in 2026?

Neither, for most SMEs. Barclays no longer offers standalone factoring; NatWest targets £250k+ and takes 10+ days to set up. For SME invoice finance the better-fit providers are Close Brothers, Bibby, Ultimate Finance, Skipton, and IGF (for difficult cases). For micro-business under £100k turnover, look at Triver, Hydr, Pulse Finance or Sonovate.