Lloyds Banking Group has announced the closure of its invoice factoring service for small businesses by the end of this year, a recent report stated. Invoice factoring involves a business selling its outstanding invoices to another entity at a discounted rate in exchange for immediate cash flow, with the purchasing company assuming responsibility for collecting the full payment.
According to the report, Lloyds currently acquires unpaid invoices from small businesses, but this service will be discontinued this week. The Financial Times (FT) reported that NatWest and Barclays ceased their factoring services a few years ago, while HSBC has implemented stricter criteria for the service.
In other developments, Lloyds has made significant changes this year. Customers are now required to use their debit cards and enter their PIN for cheque deposits, as the option to deposit cheques at local Post Offices has been eliminated. Moreover, Lloyds has raised the monthly fee for its Club Lloyds packaged bank account from £3 to £5, although this fee can be waived by depositing £2,000 or more per month.
The Club Lloyds account offers various benefits, including a choice of lifestyle benefits, access to the Club Lloyds Monthly Saver, and up to 15% cashback at selected retailers. Additional fees apply for Club Lloyds Silver and Club Lloyds Platinum accounts, with monthly charges of £11.50 and £22.50, respectively.
On a positive note, Lloyds has eliminated debit card foreign currency fees for transactions made in the local currency, although fees may still apply if payments are made in pound sterling.