Barclays invoice finance review: discounting and selective funding

Barclays is one of the UK's biggest banks, and its invoice finance offer splits in two. Larger businesses can use confidential invoice discounting and other receivables products through Barclays Corporate, while smaller limited companies are pointed to a selective invoice finance service delivered with Kriya. Barclays Invoice Finance is one of the lenders on our panel, and as a broker we can compare it with specialist invoice finance providers before you sign up to a ledger wide facility.

01About Barclays invoice finance

Barclays Corporate presents invoice finance as part of its working capital range, alongside asset based lending and trade loans. Its working capital page states that it supports businesses with a minimum turnover of £6.5 million for these solutions. For smaller firms, Barclays' business banking site describes a selective invoice finance product run in partnership with Kriya, a specialist online invoice finance provider.

That split matters. A growing business with a few million of turnover may find the corporate products out of reach for now, while the selective service is built for occasional funding of individual invoices rather than a full facility. If you bank with Barclays, it is worth knowing you are not limited to your own bank's invoice finance.

02What Barclays funds

Confidential discounting is the classic product for an established business with good credit control: you keep chasing your own customers and they deal only with you. Our guide to confidential invoice finance explains how it works day to day. The asset based lending option suits businesses with stock and plant as well as debtors; see our asset based lending page.

03Who Barclays invoice finance suits (and who it may not)

The corporate products are likely to suit:

• Larger, established businesses that meet Barclays Corporate's turnover threshold.
• Companies with strong credit control that want confidentiality.
• Groups that might later want receivables and asset funding combined.

The selective service suits smaller limited companies with occasional large invoices to other businesses. Barclays says invoices need to be at least £10,000, not overdue, and issued to other businesses.

Barclays may not be the right answer if:

• You are between the two models: too large or busy for spot funding but below the corporate threshold.
• You want a provider to run your credit control. That is invoice factoring, which specialists offer widely.
• You are a sole trader, or you invoice consumers rather than businesses.
• You work in sectors like construction with stage payments, where specialist funders have more appetite.

04What Barclays looks at

For the selective service, Barclays says you start with your company registration number and a director's date of birth and home address, and Kriya then makes contact. For corporate facilities, Barclays asks you to request a callback. Typically, an invoice discounting provider will review:

• An aged debtors and creditors list, and the spread of your customers.
• Your credit control process and history of bad debts.
• Filed accounts, recent management accounts and bank statements.
• Your terms of trade and any contracts, especially if there are credit notes, retentions or contra trading.

05Pros and cons

Pros

• A major bank provider, with invoice finance able to sit alongside your other banking.
• Confidential discounting with optional bad debt protection for larger clients.
• Selective funding for smaller firms without committing the whole ledger.
• Option to combine receivables with stock and machinery through asset based lending.

Cons

• Corporate products carry a high turnover threshold.
• The smaller business route is selective only, with a minimum invoice size.
• Less obvious choice for factoring with credit control or for niche sectors.
• Bank processes can be slower than specialist providers.

06Applying through a broker vs going direct

Invoice finance facilities differ a lot in advance rates, notice periods, minimum terms and what counts as an eligible invoice. Those details often matter more than headline pricing. We search the market, compare banks with specialist providers, and present your debtor book in the way underwriters want to see it. It is free to enquire; any broker fee is disclosed separately before you proceed.

Use our Instant Quotes tool to compare lenders in minutes. Smart Funding Solutions is an independent broker and is not part of Barclays. For Barclays' own description of its corporate options, see its working capital page. If you are looking at Barclays lending more generally, read our Barclays business loans guide.

07Alternatives to Barclays invoice finance

• Bibby Financial Services is a long standing specialist offering both factoring and discounting, including construction finance.
• Lloyds Bank Commercial Finance is the obvious comparison if you want invoice finance from another major bank.
• Kriya provides the selective service Barclays refers smaller customers to, and can be approached as a provider in its own right.