Invoice Factoring
A flexible solution to help boost your cash flow, now and into the future.
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.
What are the advantages of Invoice Factoring?
Invoice Factoring vs Invoice Discounting – what are the differences?
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Invoice Factoring |
Invoice Discounting |
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Invoice FactoringRelease funds against the whole sales ledger |
Invoice Discounting
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Invoice FactoringIncludes credit control services |
Invoice Discounting
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Invoice FactoringConfidential service so customers are not aware |
Invoice Discounting
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Invoice FactoringDebtor Protection |
Invoice Discounting
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Invoice FactoringAsset Based Lending |
Invoice Discounting
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How does Invoice Factoring work?
If your customer has not paid on time, we can help with credit control, informing you of any payment delays.
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
Invoice Factoring FAQs
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If your business would benefit from an ongoing boost to its cashflow and you turn over more than £50,000 per annum, then Invoice Factoring is a flexible solution to free up time spent chasing customer payments and running credit control.
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By assigning your invoices to us, you can access up to 90% of the invoice value typically within 24 hours. Your customers will pay into a central account and cash will be allocated on your behalf, at which point you will receive the remaining value minus our fees and charges.
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It doesn’t – although we review your personal credit files as part of our checks, it won’t affect your credit score or your ability to get personal finance.
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Yes – a notice of assignment is added to each invoice and your customers make payments directly to us.
*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.