Lloyds Bank invoice finance review
Lloyds Bank offers invoice finance to UK businesses that sell to other businesses on credit terms. This guide sets out what the official product page confirms about the current proposition, its costs, and who the eligibility criteria are aimed at.
By Funding Fred · Sources checked 19 September 2026
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Potential fit
Who could consider Lloyds Bank?
- Businesses that invoice other businesses (B2B) on agreed credit terms, rather than selling directly to consumers.
- Companies with at least £100,000 in annual turnover, as this is the threshold stated for the current proposition.
- Firms already using accounting software, which appears to be a stated requirement for this facility, if confirmed as compatible during application.
Worth weighing up
When to consider other options
- If turnover sits below the stated £100,000 threshold, this particular Lloyds facility may not be accessible.
- If a business needs its credit control and collections handled by the finance provider rather than managed in-house, this matters, since Lloyds' current proposition keeps that responsibility with the business.
- If a business sells mainly to consumers rather than other businesses, invoice finance of this type is unlikely to apply at all.
Understand the offer
Costs and repayments
Lloyds states that fees for this facility are individually quoted rather than published as a fixed rate card. That means the actual cost, whether structured as a discount fee, a service fee, or both, depends on factors specific to each application, such as turnover, sector, and debtor spread. Businesses comparing options should read invoice financing costs in the UK to understand how discount rates and service fees typically interact before requesting a quote.
The advance itself is described as up to 90% of invoice value, available against eligible invoices under the agreed facility. Fees are deducted when the remaining balance, the portion held back, is later released to the business, with the precise billing and deduction arrangements set out in the agreement.
Because this is confidential invoice discounting rather than factoring, the business retains day-to-day responsibility for chasing customer payments and running credit control internally. That has a direct cost implication: the business, not Lloyds, carries the administrative burden of collections, which some facilities elsewhere shift to the finance provider. For a general grounding in how these fee structures work across the market, see invoice financing.
Eligibility and application
The stated criteria are: B2B trading on credit terms, minimum £100,000 annual turnover, and use of accounting software. A Lloyds business bank account is not required to use this facility, which means businesses banking elsewhere are not automatically excluded from applying.
Applications would need to go through Lloyds directly via the channels described on its invoice finance page, since no separate online eligibility tool is detailed in the published information reviewed here. Meeting the baseline criteria is a starting point, not a guarantee of approval, actual terms depend on Lloyds' own assessment of the specific business and its debtor book.
Advantages to weigh up
- Advances of up to 90% of invoice value are advertised, which can improve cash flow timing against outstanding receivables.
- No requirement to hold a Lloyds business bank account, which may suit businesses already settled with another bank.
- The facility is confidential invoice discounting, so the business retains customer collections and should confirm any notification and payment-account requirements in the agreement.
Limitations to understand
- The business remains responsible for collections and credit control, which is an ongoing operational commitment, not a one-off task.
- Pricing is individually quoted, so published examples should not replace a business-specific offer.
- The published information does not confirm whether factoring, where collections are outsourced to the lender, is offered under this proposition, only discounting is described.
Look at the wider picture
Comparing the alternatives
Because Lloyds prices this facility on an individual basis, the only reliable way to compare it against other invoice finance options is to request a written quote and check it against a second offer covering the same invoice value and debtor spread. Headline advance percentages can look similar across providers while service fees, discount rates, and minimum contract terms differ significantly underneath.
It is also worth clarifying the structural type before comparing quotes, since discounting and factoring place different administrative loads on a business. The guide on invoice discounting vs factoring in the UK explains how to weigh those structural differences against turnover, team capacity, and how much collections responsibility a business wants to keep.
Product features checked against each provider’s UK website. These are comparison pointers, not a price ranking or a promise of eligibility.
Your Lloyds Bank questions, answered
Costs, eligibility and the details to check before applying.
How we put this guide together
This is a review of published UK product information, not a customer experience or a hands-on test. We have not assigned a star rating. This guide focuses on Lloyds Bank — Invoice finance. Other products may have different terms.
Sources checked 19 September 2026. Your written offer determines your actual costs and conditions.
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