Lloyds Bank Commercial Factoring

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By Rob Binns | Senior Writer | Updated: 31 January 2020

One of the largest high street banks in the UK, Lloyds provide an enormous range of funding methods, including various factoring types, across a broad range of sectors. Whether you are running a start-up or a large corporation, Lloyds have cultivated an option that can suit your needs.

Factoring Types

While, in principle, factoring is the same across the entire funding sector, the different options available can provide vastly different packages. Being a major high street funding provider has enabled Lloyds to design invoice factoring and discounting packages that meet the needs of businesses of all shapes and sizes. The main features include:

  • Immediate Availability Of Funds
  • Low Minimum Turnover Limits
  • Confidentiality
  • Professional Collection of Invoice
  • Up To 90% Of Funds Released
  • Easy Termination For Up To 6 Months
  • Start Ups Considered

Immediate Availability Of Funds

The main reason most businesses use commercial factoring services is in order to access their funds as quickly as possible, so you would expect an efficient service from a reputable provider such as Lloyds. Usually this can take up to 2-3 days to clear but Lloyds endeavour to get payment of your invoice to you within 24 hours, making them one of the fastest invoice processers in the industry.

Low Minimum Turnover Limits

Invoice factoring is the easier of the two commercial factoring services Lloyds provides, the other being invoice discounting. Most providers require annual turnover of between £100,000 and £250,000, making it unattainable to small business and start-ups. With Lloyds, however, factoring is accessible for those with just a £50,000 annual turnover, while discounting, which also provides bad debt protection, is just £250,000. This is particularly low for a traditional lender.

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With Lloyds invoice discounting you have the option of keeping their services confidential from your clients as they allow you to maintain control over collection of payments. This is beneficial for those that have built up a level of trust with their clients over a long period of time. Although discounting is not suitable for all, it is the preferred method of invoice funding for established businesses.

Professional Collection Of Invoices

Lloyds factoring, on the other hand, provides a professional service that presents an expert face to your clients. Studies have shown this to be the most efficient way of collecting payments and manages to minimise the risk of non-payment as well.

Up To 90% Of Funds Released

Not only do Lloyds provide one of the most efficient methods of invoice funding, releasing payment within 24 hours, but it can also make available one of the highest percentages of their value, 90%. Most providers will release between 80% and 85% and only a few will consider higher rates than this in anything other than special circumstances.

Easy Termination For Up To 6 Months

One of the largest drawbacks for accessing monthly invoice factoring services is being tied to long term contracts. This can be particularly problematic if you decide the service isn’t for you after a few months. To address this, Lloyds provide an easy get out for all their customers for up to 6 months, requiring only 28 days notice before termination of the contract.

Start Ups Considered

Despite the minimum annual turnover limit previously mentioned, Lloyds will consider factoring for start-ups on a case by case basis. This differs enormously from many traditional lenders who will not consider new businesses for this type of funding, whatever their attributes.


Even when your contract does not provide bad debt protection, it is far more beneficial for the factor to see that all your invoices are paid in full by your customers. As such, Lloyds, like most reputable funding providers, offer high levels of support throughout the duration of your contract.

Lloyds pride themselves on providing a partnership for your business, rather than a service, meaning you can access their expertise, in a number of areas, whenever needed.

Our guide to the best invoice factoring companies in the UK is an essential guide to other invoice factoring companies out there.

Rob Binns Expert Market
Rob Binns Senior Writer

Rob writes mainly about the payments industry, but also brings to the table industry-specific knowledge of CRM software, business loans, fulfilment, and invoice finance. When not exasperating his editor with bad puns, he can be found relaxing in a sunny (socially-distanced) corner, with a beer and a battered copy of Dostoevsky.

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