HSBC Invoice Finance vs Lloyds Bank Commercial Finance

HSBC Invoice Finance and Lloyds Bank Commercial Finance are two of the largest UK invoice finance providers by volume. Both are high street banks, both target £500,000+ turnover businesses, both offer confidential invoice discounting and factoring. Lloyds is historically larger by total advances; HSBC is part of a global banking group with multi-currency and trade finance integration. For SME facilities under £500,000, both banks have reduced their footprint and specialist independents like Close Brothers (from 0.5%), Bibby and Ultimate Finance lead the segment.

Quick Reference

Direct Answer

HSBC and Lloyds are both high street bank invoice finance providers targeting £500k+ turnover. Both offer confidential invoice discounting and factoring. Lloyds is historically the larger UK invoice finance lender by volume; HSBC has stronger multi-currency and trade finance integration. Both average 10-15 day setup, slower than independents.

Summary

HSBC Invoice Finance and Lloyds Bank Commercial Finance are top 5 UK invoice finance providers. Both target the £500k+ turnover segment with confidential discounting and factoring. HSBC offers global trade finance integration; Lloyds has the largest historical UK invoice finance book. For SMEs under £500k, both banks refer out and independents (Close Brothers 0.5%, Bibby, Ultimate Finance, Skipton) dominate.

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Head-to-head comparison of HSBC Invoice Finance and Lloyds Bank Commercial Finance for UK businesses in 2026

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Provider deep-dives at /providers/hsbc/ and /providers/lloyds/, bank-vs-independent considerations, smaller business alternatives

Head-to-Head Comparison

Feature	HSBC	Lloyds
Min turnover	£500k typical	£500k typical
Advance rate	Up to 90%	Up to 90%
Service charge from	~0.7-1.5%	~0.7-1.5%
Setup speed	10-15 days	10-15 days
Type	Global high street bank	UK high street bank
Established	1865	1765
Multi-currency	Strong (global)	UK-focused
Trade finance integration	Yes (LC, doc collections)	Yes (UK-focused)
Confidential discounting	Yes	Yes
Factoring	Yes	Yes
SME (under £500k) appetite	Limited	Reduced 2023-25

Choose HSBC If...

You trade internationally and need multi-currency invoice finance integrated with letters of credit and documentary collections
You bank with HSBC already and want a single relationship for trade, FX, and invoice finance
Your debtors include large overseas corporates and you value HSBC's global credit insight

Choose Lloyds If...

Your business and debtor base are UK-focused
You want the historically largest UK invoice finance lender
You have an existing Lloyds business banking relationship (which can speed approval)

Consider an Independent If...

Your turnover is under £500,000 (most banks decline; Close Brothers, Bibby, Ultimate Finance accept from £50k)
You need setup faster than 10-15 days (Ultimate Finance: 3 days, Close Brothers and Bibby: 5 days)
You want the lowest headline rate (Close Brothers and Skipton both from 0.5%)
You operate in a sector with specialist requirements (Bibby for construction and recruitment, IGF for turnaround, Sonovate for staffing)

Oliver Mackman

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: 26 April 2026

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HSBC vs Lloyds Invoice Finance, FAQ

Which is bigger, HSBC or Lloyds invoice finance?

Lloyds Bank Commercial Finance is historically the larger UK invoice finance lender by volume. Both are top 5 UK providers by total advances and dominate the £500,000+ turnover segment. For SME facilities under £500,000, both have reduced their book and independents (Close Brothers, Bibby, Ultimate Finance, Aldermore) have taken share.

Is HSBC or Lloyds cheaper for invoice finance?

Both are comparable on headline service charge for facilities at their target size. Indicative starting rates are similar at the £500k+ tier. Independent providers like Close Brothers and Skipton offer 0.5% headline rates, undercutting both banks' typical pricing for SME-sized facilities.

How long does setup take with HSBC or Lloyds?

Both high street banks average 10-15 working days for invoice finance setup, longer than the independent average of 4.8 days. Bank approval involves multiple internal stages including credit committee. Ultimate Finance leads the market at 3 days; Close Brothers and Bibby typically 5 days.

Does Lloyds still offer invoice finance to small businesses?

Lloyds Bank Commercial Finance has reduced its SME book in recent years, focusing on £500,000+ turnover businesses. For smaller facilities, Lloyds may refer or decline. See our deep-dive on Lloyds invoice finance for current status.

Does HSBC still offer invoice finance?

Yes. HSBC Invoice Finance remains active in the UK market, primarily targeting £500,000+ turnover businesses with confidential invoice discounting and selective factoring. For smaller facilities, HSBC tends to refer to specialist providers.