Lloyds Banking Group is set to discontinue its invoice factoring service for small businesses by the year’s end, a recent report reveals.
Invoice factoring involves a business selling its outstanding invoices to another entity at a discounted rate in exchange for immediate cash flow. The purchasing company then assumes responsibility for collecting the full payment.
According to the Financial Times, Lloyds will cease its practice of buying unpaid invoices from small businesses this week. The Mirror sought a response from Lloyds Banking Group, which encompasses Lloyds, Halifax, and Bank of Scotland.
The FT also noted that NatWest and Barclays shut down their factoring services a few years ago, while HSBC has implemented stricter criteria for such services.
In other news, Lloyds has implemented several significant changes this year. Customers can no longer deposit cheques using pay-in slips at Lloyds Banking Group. Instead, they must utilize their debit card and PIN for deposits. Additionally, the option to deposit cheques at local Post Offices has been eliminated, requiring customers to visit a Lloyds, Halifax, or Bank of Scotland branch or use mobile banking for cheque deposits.
Moreover, Lloyds has raised the monthly fee for its Club Lloyds packaged bank account from £3 to £5. The fee is waived if customers deposit £2,000 or more monthly. Club Lloyds offers various benefits, including a yearly lifestyle benefit selection such as a Disney+ subscription, cinema tickets, a magazine subscription, or discounts on certain food and beverage brands.
Customers also gain access to the Club Lloyds Monthly Saver and can earn up to 15% cashback at select retailers. The increased fee structure also applies to Club Lloyds Silver and Club Lloyds Platinum accounts, which have additional charges.
Furthermore, Lloyds has eliminated debit card foreign currency fees for transactions made in the local currency. However, if customers opt to pay in pound sterling, they may still incur charges.