Lloyds Invoice Finance
- Lloyds offer a range of invoice finance services to UK businesses. Find out more about what options are available and whether your business might be eligible.
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How invoice financing works
This comparison service is provided by Touch Financial. Touch Financial is a finance broker, not a lender. Not all products offered by Touch Financial are regulated by the Financial Conduct Authority. They compare invoice financing services from a range of different lenders, aiming to find the one that best suits the needs of their business customers. Touch Financial consultants look at the profile of each business, including cash flow, accountancy needs, and any other specific requirements, to match them with the most appropriate invoice finance provider and product. Touch Financial is authorised and regulated by the Financial Conduct Authority (FRN:727220).
Lloyds Invoice Finance allows you to unlock up to 90% of the value of unpaid customer invoices, which you can use to improve cash flow or fuel growth.
Lloyds offers a range of invoice finance options to suit businesses with different requirements, such as seasonal cash flow issues, support for credit control processes, or the need to be confidential about your use of invoice financing services.
Could Lloyds invoice finance be the right funding option for your business? On this page you can compare types of invoice finance, check whether you’re eligible, and learn how to apply.
What is Lloyds Invoice Finance?
Lloyds has more than 50 years’ experience providing invoice finance to UK businesses.
It offers three different types of invoice finance: invoice discounting, which remains confidential from your customers; invoice factoring, in which payment collection is managed for you by Lloyds; and selective invoice finance, which doesn’t require a long-term contract.
Lloyds invoice factoring and invoice discounting solutions allow you to access up to 90% of the value of an invoice and aim to be paid within 24 hours. Selective invoice financing can provide up to 85% of the value of an invoice.
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What services does Lloyds Invoice Finance offer?
Lloyds invoice discounting is entirely confidential, allowing you to access funds against unpaid invoices on an ongoing basis without alerting your customers that you’re using the service.
Invoice discounting allows you to retain control over your own sales ledger, which means you’re responsible for collecting payments and managing your customer relationships.
Like invoice discounting, Lloyds invoice factoring also allows you to unlock funds from your unpaid invoices on an ongoing basis.
The main difference is that, with factoring, Lloyds’ credit control service can collect outstanding payments for you, removing the confidentiality aspect.
Selective invoice financing
Lloyds selective invoice financing is a way to release funds from one or more unpaid invoices without being tied into a contract.
As a selective invoice financing customer, you can use Lloyds’ Invoice Finance Manager, an online platform, to manage your cash flow.
As well as connecting your accounting software directly to the platform, you can access a range of customer insight and risk monitoring tools to check the credit scores of new and existing customers, review payment histories and payment terms, and even receive credit limit suggestions.
Am I eligible for Lloyds Invoice Finance?
The requirements for each type of invoice finance Lloyd’s offers are different.
For invoice discounting, you must:
- sell business-to-business (B2B) on credit (buy now pay later) terms
- have a turnover of more than £250,000 a year
For invoice factoring, you must:
- sell to other businesses on credit terms
- have a turnover of more than £100,000 a year
For selective invoice finance, you must:
- be a limited company
- invoice other UK businesses
- use compatible accounting software
In order to fund invoices, you must:
- have been trading for a minimum of six months
- have a turnover of more than £100,000 a year
How can I get funding from Lloyds Invoice Finance?
If you meet the eligibility criteria above and have outstanding invoices, you can apply for Lloyds invoice finance solutions using its website’s quote tool.
To start the process, and to ensure Lloyds matches you with the most appropriate solution, you first need to fill in the contact form with some personal details and key information, including:
- your projected annual turnover
- the number of invoices you send per month
- the number of active debtors you have
- the amount currently owed to you
- which sector you work in
Once you’ve submitted your details, a member of the Lloyds invoice finance team will call you back to discuss a no obligation quote and discuss your requirements in further detail.
As soon as you’ve agreed on a quote with Lloyds, you can start using invoice finance to access funds. When your customer eventually settles the invoice, Lloyds will deduct a fee from the remaining balance.
You can also use the comparison tool on this page to compare invoice finance options from other providers.
What do their customers say?
On Trustpilot, Lloyds bank has been rated 1.5 out of 5 based on 2,712 reviews.
On the App store, the Lloyds Bank Mobile Banking app has been rated 4.8 out of 5 based on 1.4 million reviews. And on Google Play, the Lloyds app has been rated 4.5 out of 5 based on 259,000 reviews.
What do our nerds say?
Whether you want to access finance confidentially or you're happy for Lloyds to deal directly with your customers to collect payments, Lloyds Invoice Finance has a range of solutions for different requirements.
You can usually access up to 90% of the value of an invoice within around 24 hours, which you can use for anything from freeing up working capital to growing your business.
What’s more, Lloyds Invoice Finance is flexible, so you can choose to fund individual or multiple invoices, or even your entire sales ledger on an ongoing basis by agreeing to a contract.
Lloyds Invoice Finance FAQs
How does invoice finance work?
Invoice finance works like this:
- You send your customer an invoice for goods or services
- Lloyds advances you up to 90% of the value of an invoice
- You use the funds to support your business
- Your customer pays the full value of the invoice and Lloyds deducts a fee
Is invoice financing a good idea?
If you sell to other businesses on credit terms and you need to access funding, invoice finance might be a good way to unlock cash from any unpaid invoices.