Lloyds Banking Group is set to discontinue its invoice factoring service for small businesses by the end of the year. Invoice factoring involves a business selling its unpaid invoices to another company at a reduced value in exchange for immediate cash flow, with the purchasing company then responsible for collecting the full payment.
According to reports, Lloyds currently buys unpaid invoices from small businesses, but this service will cease this week. Other financial institutions like NatWest and Barclays have already closed their factoring services in the past, while HSBC has recently tightened its service criteria.
In addition to this change, Lloyds has implemented various other modifications this year. Previously, customers could deposit cheques using a pay-in slip, but now they are required to use their debit card and provide their PIN for deposits. Furthermore, Lloyds has discontinued the option for customers to deposit cheques at local Post Offices, necessitating visits to Lloyds, Halifax, or Bank of Scotland branches or utilizing mobile banking for cheque deposits.
Moreover, Lloyds has raised the monthly fee on its Club Lloyds packaged bank account from £3 to £5, although the fee is waived if customers deposit £2,000 or more each month. The Club Lloyds account offers perks such as a yearly lifestyle benefit choice, access to the Club Lloyds Monthly Saver, and up to 15% cashback at select retailers. There are also Club Lloyds Silver and Club Lloyds Platinum accounts available, 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, with charges potentially applying if transactions are conducted in pound sterling.