Lloyds Banking Group has decided to discontinue its invoice factoring service for small businesses by the end of this year. 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 buys unpaid invoices from small businesses but will cease this service shortly. Other major banks like NatWest and Barclays have already shut down their factoring operations in recent years, while HSBC has implemented stricter criteria for the service.
In addition to this change, Lloyds has made several significant adjustments this year. Customers are no longer able to deposit cheques using pay-in slips and must now use their debit card and PIN for deposits. The option to deposit cheques at local Post Offices has also been eliminated, requiring customers to visit a Lloyds, Halifax, or Bank of Scotland branch, or use mobile banking for cheque deposits.
Furthermore, Lloyds has raised the monthly fee for its Club Lloyds packaged bank account from £3 to £5. However, the fee is waived if customers deposit £2,000 or more each month. The Club Lloyds account offers various benefits, including lifestyle perks, access to the Club Lloyds Monthly Saver, and up to 15% cashback at selected retailers. There are also Silver and Platinum Club Lloyds accounts available for additional fees of £11.50 and £22.50 per month, respectively.
On a positive note, Lloyds has eliminated debit card foreign currency fees for transactions made in the local currency, although fees may still apply if transactions are made in pound sterling.
