Lloyds Banking Group has announced the closure of its invoice factoring service for small businesses by the end of this year. Invoice factoring involves a business selling its unpaid invoices to another company at a discounted rate in exchange for immediate cash, with the purchasing company taking charge of collecting the full payment.
The decision to discontinue this service comes as Lloyds follows in the footsteps of other major banks like NatWest and Barclays, which shut down their factoring operations a few years ago. Additionally, HSBC has recently tightened its criteria for providing similar services.
In a move separate from its invoice factoring service closure, Lloyds has implemented several changes this year. Customers are now required to use their debit card and enter a PIN for cheque deposits, as the option to deposit cheques at local Post Offices has been eliminated. Furthermore, the monthly fee for the Club Lloyds packaged bank account has been raised from £3 to £5, although this fee can be waived by depositing £2,000 or more each month.
The Club Lloyds account offers various benefits, including a yearly lifestyle benefit choice, access to the Club Lloyds Monthly Saver, and up to 15% cashback at selected retailers. Different account tiers like Club Lloyds Silver and Club Lloyds Platinum come with additional perks but at extra costs of £11.50 and £22.50 per month respectively.
On a positive note, Lloyds has eliminated debit card foreign currency fees for transactions made in the local currency, although charges may still apply if payments are made in pound sterling.