Go-Factor Existing Facility Support
Has Your Bank Stopped Offering Factoring?
If your bank or invoice finance provider is closing, withdrawing or changing your factoring facility, alternative funding is still available. Go-Factor helps UK businesses find a new factoring or invoice finance provider, compare the complete terms and move to a suitable facility without leaving the search until funding becomes urgent.
Go-Factor’s direct answer: A bank leaving factoring does not mean your business is no longer fundable. Banks and specialist providers have different appetites, operating models and facility sizes. Go-Factor listens to what your business needs, speaks with suitable funders and makes a personal introduction where the fit looks right.
Why Are Banks Moving Away From Factoring?
Traditional factoring can require regular account management, credit control and customer-payment administration. For some large banks, smaller facilities no longer fit their preferred cost, technology or customer strategy.
As a result, a bank may increase its minimum facility size, tighten eligibility, move customers towards another product or withdraw from a section of the market. These are decisions about the provider’s strategy; they do not necessarily reflect the quality of an individual customer’s business.
What Has Changed in the UK Market?
- Lloyds Banking Group: national reporting stated that Lloyds was closing its small-business invoice factoring service. This does not mean every Lloyds invoice finance or commercial-finance product has disappeared.
- ABN AMRO: ABN AMRO officially announced that it would materially reduce the international footprint of its Asset Based Financing division and conduct an orderly wind-down of non-strategic UK portfolios.
- HSBC: HSBC continues to provide invoice-finance customer services, although published reporting has described stricter eligibility for some smaller businesses.
- Handelsbanken: Handelsbanken withdrew its UK invoice finance facility. Its current UK corporate-finance range includes products such as corporate loans, property finance and asset finance, but no longer presents invoice finance as an available funding product.
The important point is not that all bank invoice finance has ended. It is that provider appetite is changing, particularly for traditional factoring and smaller facilities.
Factoring Is Still Available
Specialist invoice finance providers continue to support viable UK businesses. Many are specifically structured to serve new starts, smaller SMEs, growing businesses and sectors requiring practical credit control support.
Therefore, losing a bank facility should not be treated as the end of factoring. It should prompt a fresh comparison of the providers, products and terms now available.
Go-Factor Insight: Do Not Simply Replace the Name Above the Door
A replacement facility is an opportunity to improve the complete funding arrangement. Compare the usable cash, overall cost, service, customer limits, concentration restrictions, credit control and contract terms—not only the headline service fee.
The right question is not, “Who will take over the old agreement?” It is, “Which facility now gives this business the strongest support for cash flow and growth?”
How Go-Factor Finds Your Business a New Funding Home
Go-Factor keeps the process straightforward and personal. It begins with a friendly fact-find call with Helen Boylett-Smith to understand the business, the existing facility and what is changing.
- We listen. Tell us who currently provides the facility, what notice you have received and what the business needs from its next funder.
- We identify suitable providers. Go-Factor speaks with relevant funders from its wide UK panel rather than sending the requirement everywhere.
- We make the introduction. Where a provider has the right appetite, Go-Factor introduces the business and explains the funding requirement.
- The funder completes its assessment. The proposed provider will explain what information it needs, assess the business and issue terms where approved.
- You compare before deciding. Costs, availability, service, restrictions and contract terms should all be understood before accepting a replacement facility.
The incoming and existing providers will then agree the practical settlement and transfer arrangements. Timescales depend on the notice period, information required and complexity of the facility, so early action is valuable.
What Could Be Improved When You Move?
A replacement facility should do more than preserve yesterday’s funding. Depending on the business and terms available, a move may provide:
- lower overall invoice finance costs;
- more usable working capital from eligible invoices;
- better advance rates or customer approvals;
- more suitable concentration limits;
- clearer fees and contract terms;
- stronger credit-control support;
- better service and faster day-to-day decisions;
- a move from factoring to confidential invoice discounting; or
- a facility that grows with turnover and new contracts.
Improvements cannot be guaranteed because every facility is subject to assessment and approval. However, comparing the market creates an opportunity to discover whether the existing terms can be bettered.
Completed Go-Factor Funding Result
A Better Facility Saved One Business £12,000 Every Month
Go-Factor helped an established UK business move its banking and funding arrangements to a more suitable structure. The completed transaction combined a £3 million invoice discounting facility, £4 million of commercial term lending and a full banking switch.
Lloyds Banking Group recognised the completed transaction with its Signature Deal Award in 2026. The result demonstrates why an existing facility should be reviewed as part of the wider commercial picture rather than treated as an isolated funding product.
This is an example of one completed transaction, not a promise that every business will achieve the same saving. Outcomes depend on the existing arrangement, business circumstances and terms available.
Already Using Factoring but Paying Too Much?
Your bank does not need to be withdrawing before a review becomes worthwhile. High fees, low funding availability, poor service or restrictive terms may all justify comparing the current facility.
Go-Factor can consider whether a different factoring provider, invoice discounting facility or selective funding structure would better reflect how your business operates today.
Read Go-Factor’s dedicated guide to switching invoice finance providers .
Can Go-Factor Help With More Difficult Circumstances?
A CCJ, HMRC arrears, previous losses, rapid growth or a past business failure does not automatically mean that every provider will decline. Specialist funders assess risk and trading circumstances differently.
Go-Factor will listen to the complete background before deciding which providers may be relevant. Every application remains subject to the funder’s assessment, due diligence and approval.
Received Notice From Your Current Provider?
Check the termination date, notice requirements, exit charges and any information requested. Starting the replacement search early gives the proposed new funder time to assess the business and helps reduce the risk of a funding gap.
Frequently Asked Questions
Can I replace a factoring facility my bank is closing?
Potentially, yes. Go-Factor can discuss the existing arrangement and approach specialist funders whose appetite may suit the business. Replacement funding remains subject to assessment and approval.
Does a bank withdrawing mean my business is a poor risk?
No. A provider may leave a product or market for strategic or commercial reasons unrelated to the individual customer’s performance.
Are specialist factoring providers still available?
Yes. Specialist UK providers continue to offer factoring and other invoice finance facilities across a range of business sizes and sectors.
Can changing providers reduce invoice finance costs?
It may. The review should compare total charges alongside funding availability, customer limits, service and flexibility. A lower headline fee does not always produce the best overall facility.
Will my customers know that the provider has changed?
Factoring customers may receive updated payment instructions. The process differs for confidential invoice discounting. The incoming provider will explain the required communication before transfer.
How quickly should I start looking for replacement funding?
Start as soon as a withdrawal, review or termination becomes known. The time required depends on the existing notice period, facility complexity and the incoming provider’s assessment.
Has Your Bank or Funder Changed Its Factoring Appetite?
Speak directly with Go-Factor. A friendly, confidential fact-find can establish what is changing, what your business needs and which alternative providers may offer a suitable new funding home.
Find My Business a New Funding HomeAll facilities are subject to application, eligibility, due diligence, provider approval and agreed terms. Funding and savings are not guaranteed.