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 runs a dedicated BDM model (published minimum £750k; Lloyds typically £500k+). 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.
Lloyds is the UK's historically largest invoice finance lender, targeting £500k+ businesses. Aldermore is a challenger bank specialist with a published minimum of £750k and a dedicated BDM model; Lloyds dominates at £1m+. For lower rates, Close Brothers (0.5%) and Skipton (0.5%) undercut both. More detail + scope
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 £750k; Lloyds typically £500k+. Average setup: Aldermore 7 days, Lloyds 10-15 days. Lower-rate alternatives: Close Brothers (0.5%), Skipton (0.5%).
This page covers
Head-to-head comparison of Lloyds Bank Commercial Finance and Aldermore invoice finance for UK businesses 2026
Not covered here
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 | £750k |
| 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 | £750k-£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 £750k-£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 £750k - 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
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
Last reviewed: 15 July 2026