Lloyds Banking Group will discontinue its invoice factoring service for small businesses by the end of the year, as reported. Invoice factoring involves selling unpaid invoices to another entity at a discounted rate in exchange for immediate cash flow, with the buyer assuming responsibility for collecting the full payment.
According to reports, Lloyds currently purchases unpaid invoices from small businesses, but this service will cease this week. Other financial institutions like NatWest and Barclays ended their factoring services some years ago, while HSBC has recently tightened its service criteria.
In other news, Lloyds has implemented significant changes this year. Customers of Lloyds Banking Group can no longer deposit cheques using pay-in slips; they must now use their debit card and PIN for deposits. Additionally, the option to deposit cheques at local Post Offices has been eliminated, requiring customers to visit Lloyds, Halifax, or Bank of Scotland branches or utilize mobile banking for cheque deposits.
Moreover, Lloyds raised the monthly fee for its Club Lloyds packaged bank account from £3 to £5 this week. However, the fee is waived if customers deposit £2,000 or more monthly. The Club Lloyds account offers various benefits, such as a yearly lifestyle benefit choice between a Disney+ subscription, cinema tickets, a magazine subscription, or discounts on food and drink brands.
Furthermore, account holders gain 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, costing £11.50 and £22.50 per month, respectively.
On a positive note, Lloyds has eliminated debit card foreign currency fees for transactions made in local currency, although charges may apply if payments are made in pound sterling.