Factoring can help you free up working capital and gain earlier access to payments from your customers.

It removes the usual wait of up to 90 days from issuing an invoice to receiving payment, so you can access the cash owed to you more quickly.

If your business doesn’t have a large finance department, Factoring could also give you access to support in credit control, freeing up your time to run your business.

How Factoring works

The benefits of Factoring

  • You’ll have access to the funds you need to grow, without waiting to be paid.
  • Factoring can be a much more cost-effective way of funding growth than traditional finance products.
  • You can effectively outsource your sales ledger, monthly statements and payment reconciliation to us, freeing up your time to concentrate on your business.
  • We can take care of your credit control in a sensitive and professional way, helping you avoid the often awkward calls with customers about late payment.
  • Your available cash flow will grow as your sales develop, helping support your growth ambitions without being limited by unpaid invoices.
  • The primary security you need is the value of your invoice ledger, reducing the need for a charge on any physical assets.
  • Earlier access to payments can mean paying your own suppliers sooner, providing opportunities to negotiate better rates.
  • As an online-based service, it’s quick and convenient for you to send us invoice details and check funding availability.
  • You’ll have the support of a Client Services Manager and our dedicated service teams.

Is my business eligible for Factoring?

  • You must turnover more than £50,000 pa.
  • You should invoice your customers on credit terms.
  • Your business could benefit from additional credit control resources and support.

Why Lloyds Bank?

As one of the largest banks in the UK, your business will benefit from our specialist approach, commitment to long-term relationships, expertise and access to dedicated sector knowledge.

Try our service

You can try our Factoring service for six months and, if you're not completely satisfied, we'll refund the service fee*. If you think that Factoring is not right for you during the six months following the commencement of your agreement you may terminate your agreement without a termination fee by giving 28 days notice*. After the initial six month period has passed a notice period of three months will apply. Read our Client Charter to find out more.

To further support our values in being transparent with clients we have made our other Fees and Charges brochure available for you to download and keep. These fees and charges do not apply to clients who typically have an annual turnover greater than £25m per annum. 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.

Call 0800 169 4356 to learn more about Factoring and our other business funding options.

Support for you


Invoice Finance questions

Helpful information about how Invoice Finance works, who can apply and how we can support your business.

Read more (Invoice Finance questions)

Video case study

See how Invoice Finance has helped Fruitapeel with its growth ambitions.

Client Charter

Try our service for six months and, if you’re dissatisfied, we’ll give a refund
of the service fee.*

Find out more (Client Charter)


If you’d like to find out about other options that could suit your circumstances, use our finance selector tool.

Find out more (Solutions)

Industry expertise

Whichever industry you operate in, our facilities can be quickly scaled up to meet your exact requirements.

Find out more (Industry expertise)

© Copyright Lloyds Bank Commercial Finance 2017

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.

Lloyds Bank Commercial Finance Ltd. Registered office: No.1, Brookhill Way, Banbury OX16 3EL. Registered in England and Wales no.733011.

Lloyds Bank Commercial Finance Scotland Limited, Registered in Scotland no. 93252. Registered office: 110 St Vincent Street, Glasgow, G2 5ER.

Lloyds Bank Commercial Finance Limited is authorised and regulated by the Financial Conduct Authority under registration number 724228 for activities relating to certain types of consumer credit which are regulated under the Consumer Credit Act 1974 and by the Financial Services and Markets Act 2000. We are not deposit takers and are not regulated by the Prudential Regulation Authority.

When using Asset Finance your agreement will be with a Lloyds Banking Group company whose terms and conditions will apply. The provision of credit or leasing services by us is subject to your meeting our Credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.