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 publishes £100,000). Lloyds remains the dominant choice at £1m+ turnover. For faster setup, Close Brothers (5 days) and Bibby (sector specialism, 5 days) are quicker than both.

Lloyds is the UK's historically largest invoice finance lender, with a published minimum turnover of £100,000. Aldermore is a challenger bank specialist with a published minimum of £750k and a dedicated BDM model; Lloyds dominates at £1m+. Few providers publish a rate, so benchmark with several quotes. More detail + scope

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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

FeatureLloydsAldermore
Min turnover£100k£750k
Service charge fromNot published0.7%
Advance rateUp to 90%Up to 90%
Setup speed10-15 daysA few days to a few weeks
TypeHigh street bankChallenger bank
Established1765 (Lloyds), IF division 1990s2009
SME focusReduced 2023-25Strategic priority
Dedicated BDMMainly £1m+ accountsYes (all accounts)
Confidential discountingYesYes
FactoringYesYes
Best for£1m+ turnover, existing Lloyds customer£750k-£5m, mid-market SME

Choose Lloyds If...

Choose Aldermore If...

Consider Alternatives If...

AP

Adam Parker

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.

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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?

Lloyds does not publish its fees, so compare quotes. For mid-market businesses under £1m, Aldermore is often more competitive on actual quoted rates because invoice finance is core to its strategy, not a sub-product. Few providers publish a headline rate, so benchmark with several quotes.

Which is better for SMEs?

Lloyds has the lower published entry point: a minimum turnover of £100,000 a year, against Aldermore's published minimum of £750k. Aldermore's edge is 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?

Yes. Lloyds Bank Commercial Finance publishes a minimum turnover of £100,000 a year, with advances up to 90%. Aldermore is also actively building its SME invoice finance book, though its published minimum is higher at £750k.

Setup speed: Lloyds vs Aldermore?

Aldermore says its setup ranges from a few days to a few weeks; Lloyds averages 10-15 days. Both are slower than Close Brothers and Bibby (5 days) and Ultimate Finance (within one week). If speed is critical, an independent specialist will be faster than either Lloyds or Aldermore.