Lloyds Banking Group is set to discontinue its invoice factoring service for small businesses by the end of the year, as reported. Invoice factoring involves a business selling its outstanding invoices to another company at a discounted rate in exchange for immediate cash flow, with the purchasing company taking over the collection process.
According to reports, Lloyds currently acquires unpaid invoices from small businesses but will cease this service this week. The decision follows similar actions by NatWest and Barclays in discontinuing their factoring services in past years, while HSBC has tightened its eligibility criteria for the service.
In other developments, Lloyds has implemented significant changes this year. Customers can no longer deposit cheques using pay-in slips but must now utilize their debit card and enter their 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 use mobile banking for cheque deposits.
Moreover, Lloyds has raised the monthly fee on its Club Lloyds packaged bank account from £3 to £5, although the fee is waived for customers depositing £2,000 or more monthly. The Club Lloyds account offers various benefits such as a yearly lifestyle perk, access to the Club Lloyds Monthly Saver, and cashback opportunities at selected retailers.
Furthermore, Lloyds has removed debit card foreign currency fees for transactions made in the local currency, with charges still applicable for transactions in pound sterling.