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 sales ledger management support, 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 sales ledger management, freeing up your resource to focus on running your business.
  • 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 knowledgeable, named Client Service 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 sales ledger management resources and support.
  • You must be a business selling to other businesses on credit terms.

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 our normal contractual termination conditions will apply. For more information read our Client Charter.

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. 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

Watch Chow Mezger, Managing Director of Jude’s Ice Cream, talk about their growth journey.

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)

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: No1 Brookhill Way, Banbury, Oxfordshire, OX16 3EL.

Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. 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 Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland No.SC327000. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration no. 169628.

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.