Barclays Invoice Finance Review

Barclays offers confidential invoice discounting to UK businesses with annual turnover from £500,000. Important context: Barclays exited the invoice factoring market in 2021, so they no longer provide credit-control services as part of their invoice finance. The product is confidential discounting only, focused on established mid-market SMEs that bank with Barclays Business Banking and want their invoice finance bundled with the wider banking relationship.

Key Facts

ProductConfidential discounting only
Min turnover£500,000
Advance rateUp to 85%
Setup speed10-15 days
PricingNegotiated
TypeUK clearing bank
FactoringExited 2021
Our rating3.8/5

The 2021 Factoring Exit

Barclays withdrew from offering invoice factoring in 2021 as part of a wider business banking restructure. Factoring (where the lender manages credit control, contacts customers, and runs receivables collection) is now provided exclusively by specialists: Bibby Financial Services, Close Brothers Invoice Finance, Skipton Business Finance, Ultimate Finance, IGF. If your underlying need is to outsource credit control rather than just access cash against invoices, Barclays is not the answer. They retain confidential invoice discounting as a financing-only product where you keep credit control in-house and your customers do not know the facility exists.

Pros and Cons

Strengths

  • Bundles with existing Barclays Business Banking relationship
  • Confidential discounting as standard product
  • Strong banking security (UK clearing bank, PRA + FCA regulated)
  • Single relationship manager across banking and lending
  • Larger facilities available (up to £25m+ negotiated)

Limitations

  • No invoice factoring since 2021 (discounting only)
  • High £500k minimum turnover
  • 10-15 day setup vs 5-10 for specialist independents
  • Negotiated pricing means less transparency than published-rate providers
  • Often more expensive than Close Brothers or Aldermore for same applicant profile

Best For / Less Suitable For

Best for

  • Established UK SMEs (£500k+ turnover) already banking with Barclays
  • Larger facilities (£2m+) where clearing-bank scale matters
  • Businesses wanting a single relationship across banking + lending
  • Confidential discounting only (you keep credit control in-house)
  • International trading businesses needing wider Barclays trade finance

Less suitable for

  • Businesses needing factoring (managed credit control), Barclays exited 2021
  • Sub-£500k turnover (use Aldermore £250k or Bibby £50k)
  • Speed-sensitive applicants (Close Brothers or Skipton are typically faster)
  • Cost-sensitive applicants (Close Brothers and Aldermore often cheaper)
  • Selective or spot factoring needs (use Hydr, Triver, Accelerated Payments)

How Barclays Compares

ProviderMin turnoverFactoringSetupType
Barclays£500kNo (exited 2021)10-15 daysUK clearing bank
HSBC£500kYes (some files)10-20 daysUK clearing bank
Close Brothers£50kYes5-10 daysFTSE 250 bank
Aldermore£250kYes7 daysChallenger bank
Skipton£100kYes7-10 daysBuilding society

Application Path

Apply through your Barclays Business Banking relationship manager or online via the Barclays Business portal. Submit Companies House data, last 2 years' filed accounts, aged debtor report, sample invoices, and director information. Credit review typically takes 7 to 12 working days, drawdown 3 to 5 days after approval. Existing Barclays customers benefit from continuous KYC and faster turnaround; non-customers face the full bank-onboarding process which adds time.

Our Verdict

Barclays Invoice Finance is best suited to established UK SMEs that already bank with Barclays and want their invoice discounting bundled into the wider business banking relationship. The 2021 factoring exit is the headline limitation: if you need outsourced credit control, Barclays cannot help. For confidential discounting at £500k+ turnover where the underlying preference is single-relationship banking, Barclays is a credible choice. For most SMEs prioritising price, speed, or product breadth, specialist independents (Close Brothers, Bibby) or challenger banks (Aldermore) are usually a better fit.

OM

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: 11 May 2026

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Barclays Invoice Finance FAQ

Does Barclays still offer invoice factoring?

No. Barclays announced its exit from invoice factoring in 2021 and now offers only confidential invoice discounting. The factoring exit was part of a wider Barclays Business Banking restructure focused on confidential facilities for larger SMEs. Businesses needing factoring (where the lender manages credit control and contacts your customers) must look at specialists: Bibby Financial Services, Close Brothers Invoice Finance, Skipton Business Finance, or fintech alternatives.

What is the minimum turnover for Barclays invoice discounting?

£500,000 annual turnover is Barclays' standard minimum for invoice discounting. They focus on established mid-market SMEs (£500k to £25m turnover) rather than startups or micro-businesses. The £500k threshold is the same as HSBC and Skipton's confidential discounting offering; for smaller businesses, Aldermore's £250k confidential threshold is the cheapest bank-backed route.

How quickly can Barclays set up invoice discounting?

10 to 15 working days for a typical Barclays file, sometimes longer for complex or larger facilities. Clearing banks (Barclays, HSBC, NatWest, Lloyds) are systematically slower than specialist independents (Close Brothers, Skipton, Bibby) which typically complete in 5 to 10 days. If speed matters, Barclays is rarely the fastest route.

Do I need to bank with Barclays to use their invoice finance?

Not formally required but practically expected. Barclays prefers to bundle invoice discounting with the business current account so the bank-feed reconciliation runs cleanly. You can use Barclays invoice discounting with a non-Barclays business account, but the setup is slower and the relationship is thinner. Most Barclays invoice discounting customers also hold their main business current account with Barclays.

What does Barclays charge for invoice discounting?

Barclays prices on a negotiated basis rather than publishing standard rates. Bank of England base rate is 3.75% (March 2026); Barclays discount charges typically run base plus 1.5% to 3.0% for clean SME files, with service charges in the 0.3% to 0.7% range. Pricing is competitive with HSBC and Lloyds; less competitive than Close Brothers or Aldermore for the same applicant.

How does Barclays compare to HSBC on invoice discounting?

Both are UK clearing banks targeting £500k+ turnover with confidential invoice discounting. Differences: Barclays exited factoring entirely in 2021, HSBC retains it for some files. Barclays typically has stronger relationship-banker continuity; HSBC has stronger international trade finance support. Pricing is similar (negotiated, not published). Most SMEs choosing between them are driven by existing banking relationship rather than product differentiation.

What are the alternatives to Barclays Invoice Finance?

For confidential invoice discounting at £500k+ turnover: Close Brothers (cheaper, faster, FTSE 250), Skipton Business Finance (building-society backed, established), HSBC UK (clearing bank alternative). For £250k to £500k confidential: Aldermore (cheapest in this bracket). For factoring (which Barclays no longer offers): Bibby, Close Brothers, Skipton, Ultimate Finance, IGF. For sub-£250k: Bibby (£50k min) or Ultimate Finance (£50k min).