Invoice Finance FAQs

Energise your business, strengthen your working capital and support your growth plans with our two Invoice Finance products - Factoring and Invoice Discounting.

How does Invoice Finance work, is it a loan?

Invoice Finance is not a loan, although it is secured against an asset – your invoices. We advance funds against the value of your invoices and the amount you draw down is repaid when your customer makes a payment.

The two Invoice Finance products differ only slightly in how they function. Visit our dedicated Factoring and Invoice Discounting pages for details and an illustration of how these services work.

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Am I eligible for Invoice Finance?

You will need a turnover of more than £50,000 and have your customers trading on credit terms to be eligible for Invoice Finance. Both new and established businesses can apply for the service, and it can be used in a wide variety of different sectors.

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I’m used to using loans and overdrafts - why should I use Invoice Finance?

Invoice Finance releases cash when invoices are raised, and helps you improve and control your cash flow so that you can run your business smoothly and efficiently.

Invoice Finance is also a scalable solution that’s ideal for growing businesses – as turnover increases, you can access the funds tied up in your invoices and grow your assets, stock holding and infrastructure accordingly.

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Is Invoice Finance a new product?

Invoice Finance is a long-established funding method which continues to grow in popularity.

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How much money will immediately become available through Invoice Finance?

We will release up to 90% of an invoice value through Invoice Finance, often within 24 hours. This saves you waiting up to 90 days to be paid. The balance will be available when full payment from your customer has been received, minus a service fee.

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Are all business transactions eligible for Invoice Finance, and do I need to use the service for all my invoices?

Not all of your transactions will qualify for Invoice Finance. For example, any commercial cash or retail sales would not be eligible and you would not have to put them through the Invoice Finance process.

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Do I need to hold my day-to-day bank account with Lloyds Bank to use your Invoice Finance products?

No, you do not need to hold your day-to-day bank account with us.

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Can I transfer my current Invoice Finance service from another provider, and how easy is it to do that?

You can transfer your Invoice Finance facility from another provider to Lloyds Bank at any time using an interfactor transfer. We will do everything we can to ensure a smooth and efficient transfer of your current service.

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What are the costs of Invoice Finance?

Call 0800 169 4356 to get an instant quote for using an Invoice Finance solution. The cost will depend on which product works best for you, and the services you wish to use as part of any agreement.

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Does Invoice Finance affect the relationship between me and my customers?

Our two Invoice Finance products, Factoring and Invoice Discounting, are designed to ensure business as usual, with the least amount of disruption to you and your customers’ businesses.

With Invoice Discounting, your customers will not know you are using the service. You continue to send out invoices and statements and collect payments as usual.

For Factoring, we can take care of all your credit control processes, including statements and payment reconciliation. We can also professionally and sensitively handle credit control calls for late payments. It means you avoid potentially awkward conversations with customers when chasing payments.

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What happens if a customer doesn’t pay?

You will not receive the balance of an invoice until it is fully paid by a customer. If a customer does not pay an invoice, we will support you in trying to reclaim the monies owed.

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Support for you

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)

Solutions

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.