Lloyds Banking Group will discontinue its invoice factoring service for small businesses by the end of the year, as per reports. Invoice factoring involves a business selling its outstanding invoices at a discounted rate to receive immediate cash flow, with the purchasing company taking charge of collecting the full payment.
In a recent development, Lloyds will cease purchasing unpaid invoices from small businesses this week. This decision aligns with a trend seen in the industry, with NatWest and Barclays having shut down their factoring operations in previous years, and HSBC tightening its service criteria, according to the Financial Times.
Additionally, Lloyds has implemented various changes this year. One notable change is the requirement for customers to use their debit card and PIN instead of pay-in slips to deposit cheques. Moreover, customers can no longer deposit cheques at local Post Offices, necessitating visits to Lloyds, Halifax, or Bank of Scotland branches or the use of mobile banking for cheque deposits.
Furthermore, Lloyds has raised the monthly fee for its Club Lloyds packaged bank account from £3 to £5, with the fee waived for those depositing £2,000 or more monthly. The Club Lloyds account offers lifestyle benefits such as a choice between a Disney+ subscription, cinema tickets, or discounts on food and drink brands. Additional benefits include access to the Club Lloyds Monthly Saver and cashback at selected retailers, with higher fees for Silver and Platinum account tiers.
On a positive note, Lloyds has eliminated debit card foreign currency fees for transactions made in the local currency, though fees may apply if payments are made in pound sterling.