Is Lloyds Still Doing Invoice Finance?
Yes - Lloyds Bank Commercial Finance still offers invoice finance and remains the UK's largest provider by volume. But they've significantly reduced their SME book over the past few years, focusing on larger businesses with £500,000+ turnover. Many smaller businesses that previously had Lloyds facilities have been moved to independents or declined at renewal.
Yes, Lloyds Bank still offers invoice finance and remains the UK's largest provider by volume. But they have shifted focus to businesses with £500,000+ turnover and are declining or not renewing many smaller SME facilities.
More detail + scope
Summary
Lloyds Commercial Finance has concentrated on mid-market and corporate clients, absorbing Alex Lawrie Factors and Cash Friday into the main brand. Businesses under £500k turnover are unlikely to get a new facility. Better alternatives for smaller businesses include Close Brothers (from £50k, 0.5%), Bibby (from £50k, largest independent), Ultimate Finance (95% advance, 3-day setup), and IGF (flexible on difficult cases).
This page covers
Current status of Lloyds Bank invoice finance and alternatives for declined or sub-threshold businesses
Not covered here
Lloyds provider review (see /providers/lloyds/), small business options (see /best/invoice-finance-for-small-business/)
What's Changed
Lloyds has been quietly concentrating on mid-market and corporate clients - businesses with £500,000+ turnover and clean debtor books. The economics of servicing smaller SME invoice finance facilities don't work at Lloyds' cost base. They've absorbed Alex Lawrie Factors and Cash Friday into the main Lloyds Commercial Finance brand, consolidating their book.
If you're a business with turnover under £500,000, Lloyds is unlikely to offer you a new facility. If you're an existing Lloyds customer below this threshold, you may find your facility isn't renewed or your terms get less competitive at review. This isn't personal - it's a strategic shift across all the high street banks.
Better Options for Smaller Businesses
If Lloyds has turned you down or you're below their threshold, these providers specialise in smaller businesses:
- Close Brothers - from £50k turnover, 0.5% starting rate
- Bibby - from £50k, UK's largest independent
- Ultimate Finance - from £50k, 95% advance, 3-day setup
- IGF - from £50k, flexible on difficult cases
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 6 April 2026