LONDON — December 28, 2025
Lloyds Banking Group, the UK’s largest mortgage lender, plans to close its invoice factoring service by the end of 2025, according to sources cited by the Financial Times.
The service allows small and medium-sized enterprises (SMEs) to receive advances on unpaid invoices, helping manage cash flow without traditional loans. Declining demand has prompted the decision, with fewer than 1% of Lloyds’ SME customers currently using the product.
Lloyds declined to comment on the move, which aligns it with other major UK banks that have already exited the invoice factoring sector. The bank intends to offer alternative financing options to affected customers and continue expanding in other areas of SME lending.
Under CEO Charlie Nunn, Lloyds is streamlining operations to focus on core retail and commercial banking activities. The closure reflects broader industry trends, as high street banks pivot toward more lucrative corporate clients amid ongoing economic pressures on smaller businesses, including high interest rates and persistent late payment issues.
No details on potential job losses have been disclosed. The decision comes as SMEs face tighter financing conditions, potentially limiting options for cash flow support.
