What is Invoice Factoring?

Invoice Factoring (also know as debt factoring) is a type of invoice financing that allows you to release cash quickly from your sales ledger on an ongoing basis, to improve your cashflow.

Our Invoice Factoring solution has flexibility to include a credit control service where we can manage collections on your behalf, so you can focus on your business priorities.

Get a quote for Invoice Factoring

You can get an online quote in minutes, without affecting your credit rating.

Get a quote

What are the advantages of Invoice Factoring?

I need ongoing fast access to funding

Invoice Factoring allows you to leverage your sales ledger to improve cash flow, or release funds to invest in new opportunities.

  • Access up to 90% of invoice value
  • Receive funds typically within 24 hours
  • As your debtor book rises, so does the amount of cash you can realise.

I spend too much time on credit control

When you use our Invoice Factoring services, we can take over management of your credit control which frees up time and resource to focus on your business priorities.

  • No need to chase payments
  • We’ll manage collections sensitively and professionally
  • Support from a specialist Invoice Finance Client Manager.

I want to protect my business from bad debt

Our Invoice Factoring service, combined with our Debtor Protection service, can mitigate against the impact of late or non-payment from your customers, whether they are in the UK or overseas.

  • We offer Invoice Factoring for both UK and overseas debt, in a range of different currencies
  • With our experienced team managing collection, you’ll reduce the risk of late payment
  • You’ll also have access to our Debtor Protection service for further protection against non-payment.

Invoice Factoring vs Invoice Discounting – what are the differences?

Invoice Discounting vs Invoice Factoring – what are the differences?

Invoice Factoring

Invoice Discounting

Invoice Factoring

Release funds against the whole sales ledger

Invoice Discounting

Invoice Factoring

Includes credit control services

Invoice Discounting

Invoice Factoring

Confidential service so customers are not aware

Invoice Discounting

Invoice Factoring

Debtor Protection

Invoice Discounting

 

Invoice Factoring

Asset Based Lending

Invoice Discounting

How does Invoice Factoring work?

Day 1

You supply services or goods to your customer and send invoice details to us. The invoice is sent to your customer, with payment terms and details clearly marked.

Day 2

We pay you up to 90% of the invoice value, typically within 24 hours.

Day 2-30

You can use your funds to support your business ambitions.

Day 30+

Full payment received from customer. We forward on the balance of the invoice value to you, minus a small fee.

If your customer has not paid on time, we can help with credit control, informing you of any payment delays.

How Invoice Factoring works?

How Invoice Factoring works

Does my business qualify for Invoice Factoring?

Invoice Factoring is available to new and existing Lloyds Bank customers who:

  • Have a minimum turnover of £50,000 per annum
  • Sell business-to-business and on credit terms

Get a quote for Invoice Factoring

You can get an online quote in minutes, without affecting your credit rating.

Get a quote

Invoice Factoring FAQs

Protect your business against the impact of the customers failing to pay

We’re able to provide invoices, even in these unprecedented times*. With Debtor Protection, we can help make your business more resilient.

More about Debtor Protection

How much does Invoice Factoring cost?

Each agreement is priced individually to your business. To find out more, give us a call on 0800 169 4356.

To further support our values in being transparent with clients, please view our Operating Conditions Fees and Charges. These fees and charges do not apply to clients who typically have an annual turnover of more than £25 million.

If you are an existing client and are unsure whether these other fees and charges are applicable to you, please check with your Client Manager.

Talk to an Invoice Finance specialist

Call 0800 169 4356

We’re available from 9am to 5pm, Monday to Friday, except public holidays.

Call me back

Other Invoice Finance solutions

If Invoice Discounting isn’t right for your business, and you only have occasional cash flow challenges, we also offer selective funding.

Choose which invoices you’d like to fund and access a suite of useful risk insight tools to help protect you from the risk of late payment.

Other borrowing options

Whether you’re an established business or just starting out, finding the right finance product to meet your needs can be difficult.

We want to make it simple for you to compare and choose our products, whatever your business circumstances.

*Subject to terms and conditions.

Important Legal Information

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

Factoring and Invoice Discounting facilities may be provided by one or more of Lloyds Bank Commercial Finance Limited, Lloyds Bank plc and Bank of Scotland plc. Lloyds Bank Commercial Finance Limited. Registered in England & Wales no. 733011. Registered office: No.1, Brookhill Way, Banbury OX16 3EL. Lloyds Bank plc. Registered in England and Wales no. 2065. Registered Office: 25 Gresham Street, London EC2V 7HN. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278. Bank of Scotland plc. Registered in Scotland No.SC327000.  Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration no. 169628.