Lloyds vs Aldermore Invoice Finance

Lloyds Bank Commercial Finance is the UK's historically largest invoice finance lender (high street bank, est. 1765); Aldermore is a challenger bank (est. 2009) that has made SME invoice finance a strategic priority. Aldermore is more SME-friendly (£250k+ vs Lloyds' £500k+) with a dedicated BDM model. Lloyds remains the dominant choice at £1m+ turnover. For lower headline rates and faster setup, Close Brothers (0.5%, 5 days) and Bibby (sector specialism, 5 days) undercut both.

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Direct Answer

Lloyds is the UK's historically largest invoice finance lender, targeting £500k+ businesses. Aldermore is a challenger bank specialist, accepting £250k+ with a dedicated BDM model. Aldermore is more SME-friendly; Lloyds dominates at £1m+. For lower rates, Close Brothers (0.5%) and Skipton (0.5%) undercut both.

Summary

Lloyds Bank Commercial Finance vs Aldermore compares a 260-year-old high street bank against a 16-year-old challenger bank. Both offer invoice discounting and factoring. Lloyds historically larger; Aldermore more SME-focused with dedicated BDM. Aldermore minimum £250k; Lloyds typically £500k+. Average setup: Aldermore 7 days, Lloyds 10-15 days. Lower-rate alternatives: Close Brothers (0.5%), Skipton (0.5%).

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Head-to-head comparison of Lloyds Bank Commercial Finance and Aldermore invoice finance for UK businesses 2026

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Provider deep-dives at /providers/lloyds/ and /providers/aldermore/, full bank vs bank comparisons

Head-to-Head Comparison

Feature	Lloyds	Aldermore
Min turnover	£500k typical	£250k
Service charge from	~0.7-1.5%	0.7%
Advance rate	Up to 90%	Up to 90%
Setup speed	10-15 days	7 days
Type	High street bank	Challenger bank
Established	1765 (Lloyds), IF division 1990s	2009
SME focus	Reduced 2023-25	Strategic priority
Dedicated BDM	Mainly £1m+ accounts	Yes (all accounts)
Confidential discounting	Yes	Yes
Factoring	Yes	Yes
Best for	£1m+ turnover, existing Lloyds customer	£250k-£5m, mid-market SME

Choose Lloyds If...

Your turnover is £1m+ (the segment Lloyds is actively serving)
You bank with Lloyds already and want a single relationship
You need the largest available facility size and Lloyds' historical scale matters

Choose Aldermore If...

Your turnover is £250k-£5m (Aldermore's strategic sweet spot)
You want a dedicated BDM relationship rather than centralised processing
You value SME-focused decisioning over global bank scale
You need setup faster than Lloyds' 10-15 day pace

Consider Alternatives If...

Your turnover is under £250k - Close Brothers, Bibby, Ultimate Finance all accept from £50k
You want the lowest headline rate - Close Brothers and Skipton both from 0.5%
You need 3-5 day setup - Ultimate Finance at 3 days, Close Brothers and Bibby at 5 days
You're in construction or recruitment - Bibby's sector teams have deeper expertise

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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Lloyds vs Aldermore Invoice Finance, FAQ

What's the difference between Lloyds and Aldermore invoice finance?

Lloyds Bank Commercial Finance is one of the UK's largest and oldest invoice finance lenders (high street bank, est. 1765 as Lloyds). Aldermore is a challenger bank (est. 2009), focused specifically on SME lending including invoice finance. Lloyds is larger by volume; Aldermore is more SME-focused with a dedicated BDM model and faster decisioning.

Is Lloyds or Aldermore cheaper?

Indicative service charges are similar at the £500k+ tier (around 0.7-1.5%). For mid-market £250k-£1m businesses, Aldermore is often more competitive on actual quoted rates because invoice finance is core to its strategy, not a sub-product. For lower headline rates, Close Brothers (0.5%) and Skipton (0.5%) undercut both.

Which is better for SMEs?

Aldermore is materially more SME-friendly. Aldermore accepts £250k+ turnover with confidential discounting and factoring; Lloyds typically targets £500k+ and has reduced SME activity in recent years. Aldermore also has a dedicated BDM relationship model that smaller businesses tend to find easier than Lloyds' centralised processing.

Does Lloyds still offer invoice finance to small businesses?

Lloyds Bank Commercial Finance has reduced its SME book since 2023, focusing on £500,000+ turnover businesses. For smaller facilities Lloyds may decline or refer to specialist providers. Aldermore, by contrast, is actively building its SME invoice finance book.

Setup speed: Lloyds vs Aldermore?

Aldermore averages 7 working days; Lloyds averages 10-15 days. Both are slower than Ultimate Finance (3 days) and Close Brothers and Bibby (5 days). If speed is critical, an independent specialist will be faster than either Lloyds or Aldermore.