Lloyds Banking Group has decided to discontinue its invoice factoring service for small businesses by the end of this year. Invoice factoring involves businesses selling their outstanding invoices to another entity at a discounted rate in exchange for immediate cash flow. The entity then assumes responsibility for collecting the full payment of the invoices.
Reports indicate that Lloyds will no longer purchase unpaid invoices from small businesses starting this week. This decision aligns with similar actions taken by NatWest and Barclays in the past, as well as HSBC tightening its eligibility criteria for such services.
In addition to these changes, Lloyds has implemented several other adjustments this year. Customers are now required to use their debit card and PIN to deposit cheques, as the option to deposit cheques at local Post Offices has been discontinued. Moreover, the monthly fee for Club Lloyds packaged bank accounts has been raised from £3 to £5, although the fee is waived if a minimum of £2,000 is deposited monthly.
Club Lloyds packaged bank accounts offer various benefits, including a yearly lifestyle benefit choice such as a Disney+ subscription, cinema tickets, a magazine subscription, or discounts on certain food and drink brands. Additionally, account holders have access to the Club Lloyds Monthly Saver and can earn up to 15% cashback at select retailers. Further customization is available through Club Lloyds Silver and Club Lloyds Platinum accounts, which come with additional fees 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. However, fees may still apply if payments are processed in pound sterling.