Lloyds Banking Group has decided to discontinue its invoice factoring service for small business clients by the end of the current year, as per reports. Invoice factoring involves selling unpaid invoices to another entity at a discounted rate in exchange for immediate cash flow, with the purchasing company taking responsibility for collecting the full payment.
According to the Financial Times (FT), Lloyds, which encompasses Lloyds, Halifax, and Bank of Scotland, will halt the practice of buying unpaid invoices from small businesses this week. The FT also noted that NatWest and Barclays ceased their factoring services a few years back, while HSBC has recently tightened its eligibility requirements for such services.
In other news, Lloyds has made notable changes this year. Previously, Lloyds Banking Group customers could deposit cheques using a pay-in slip, but now, they are required to use their debit card and enter their PIN for deposits. Additionally, the option to deposit cheques at local Post Offices has been eliminated, necessitating customers to visit a nearby Lloyds, Halifax, or Bank of Scotland branch or utilize mobile banking for cheque deposits.
Furthermore, Lloyds has raised the monthly fee on its Club Lloyds packaged bank account from £3 to £5, although the fee is waived if customers deposit £2,000 or more each month. The Club Lloyds account offers various benefits, including a yearly lifestyle benefit choice such as a Disney+ subscription, cinema tickets, a magazine subscription, or discounts on specific food and drink brands. Moreover, account holders gain access to the Club Lloyds Monthly Saver and can receive up to 15% cashback at select retailers. Additional fees apply for Club Lloyds Silver and Club Lloyds Platinum accounts.
On a positive note, Lloyds has eliminated debit card foreign currency fees for transactions made in the local currency, with charges still applicable if transactions are made in pound sterling.