Back to today’s briefing

Story perspectives

Lloyds Ends Invoice Factoring, Hits SMEs Hard

12/29/2025

50 11 Full Breakdown

Summary

Story summary

Lloyds Banking Group will close its invoice factoring service by the end of 2025, affecting SMEs.
The move follows a trend of UK banks withdrawing from SME financing in favor of corporate clients, and industry advocates warn it will worsen SMEs' financial challenges.
The service lets businesses sell unpaid invoices for immediate cash, with demand already declining.
Lloyds will offer alternative financing options to affected clients.

History

Historical Context

The 2008 UK banking crisis stemmed from a series of global financial failures, beginning with HSBC's profit warning in February 2007. By October 2008, the UK government intervened with a £45 billion bailout for banks like Lloyds and RBS, shifting their focus to larger corporations and limiting support for small and medium enterprises (SMEs), which now face ongoing financial challenges.

1 of 2

Story summary

Lloyds Banking Group will close its invoice factoring service by the end of 2025, affecting SMEs.
The move follows a trend of UK banks withdrawing from SME financing in favor of corporate clients, and industry advocates warn it will worsen SMEs' financial challenges.
The service lets businesses sell unpaid invoices for immediate cash, with demand already declining.
Lloyds will offer alternative financing options to affected clients.

1 / 2