Lloyds Bank’s Invoice Finance offering supports resilience and growth

Jamie Kemp

All these unwelcome events have highlighted a crucial fact: that whatever a company’s size or sector, positive cash flow is the lifeblood of its survival and success. This is especially true in construction, which has its own unique challenges including tight profit margins, extended payment terms and complex invoicing processes.

Lloyds Bank, with its experience in supporting businesses, has a deep understanding of the fact that those in the construction sector must often incur significant costs before receiving payment, leading to worrying cash flow constraints.

Jamie Kemp, head of the Invoice Finance Broker Growth team at Lloyds Bank, says that “effective cash flow management allows businesses to navigate challenges and seize opportunities for growth,” adding that helping to ensure steady cash flow allows companies to meet operating expenses, invest in new projects, and sustain themselves even during tough times.

The bank’s dedicated Invoice Finance offering is designed to address the unique challenges of this area of business and it’s a solution for many companies that has rapidly been gaining recognition.

Independent advisory and research organisation ukfinance.org points out that UK businesses often wait an average of 40-60 days to be paid – and sometimes longer. Invoice finance it says provides businesses with the ability to access funds almost immediately after the point of sale, instead of waiting months to be paid.

It is an option for most businesses that sell their goods or services to other businesses on credit and while real-time customer data consultant FullCircl says there are more than 28,000 construction firms operating in Scotland, of which some 3,000 have more than £25,000 in outstanding invoices, less than five per cent of these firms currently have an Invoice Finance facility supporting their cash flow requirements.

This is a shortfall that Kemp says Lloyds Bank is committed to addressing. He explains: “Our Invoice Finance team is well-versed in the operations and challenges of construction businesses, such as extended payment terms and liquidated damage policies.

“This enables Lloyds Bank to tailor Invoice Finance solutions to meet each business’s specific needs – and once onboard, they benefit from continuous support provided by our dedicated Construction Invoice Finance Client Management team.”

Brokers, he adds, play a crucial role in helping these companies obtain financial options and recognising this, Lloyds Bank recently launched a new Invoice Finance Broker Growth Team headed up by Kemp, which aims to deepen relationships with brokers and provide a more personalised and efficient service.

While brokers are essential partners for Lloyds Bank, he says many aren’t yet aware that it can support construction businesses with its Invoice Finance solutions. “It’s probably our best-kept secret,” Kemp says. “And the new team is here to change that, promoting our capabilities so that brokers can confidently include us in their client conversations.”

With so many options at their disposal, he adds that it’s crucial brokers understand the full range of services the bank offers.

Kemp says: “We want to ensure they’re equipped with the best tools to support their clients and together we can provide even more effective support to these businesses.

“Over the past 24 months, we have expanded our Invoice Finance sales force through strategic recruitment and training programmes.”

The formation of the Broker Growth Team, he adds, represents the next phase of the bank’s strategic growth plans.

“This new team will enable Lloyds Bank to engage with more brokers and consequently support a greater number of businesses in need of enhanced cash flow,” Kemp says.

By focusing on the specific needs of the construction sector and fostering strong broker partnerships, Lloyds Bank is well positioned to support the growth and sustainability of construction businesses across Scotland and the rest of the UK.