Lloyds TSB Commercial Finance and JP Morgan are launching a supplier finance service to UK investment-grade corporate and global businesses.

The service combines Commercial Finance’s expertise and presence in UK asset-based lending with JP Morgan’s innovative supplier finance administration and support systems.

UK companies can use the service to manage payments to their suppliers more efficiently by allowing their suppliers to receive payment at a date of the suppliers’ choice, which can be earlier than the agreed payment terms.

Ted Ettershank, managing director of Lloyds TSB Commercial Finance, says, “This is a significant move into the market and will have a powerful impact. The solution has huge potential to improve the working capital and profit margin of major corporate buyers and the cashflow of their suppliers throughout the UK. We will introduce supplier finance in a controlled expansion programme over the next 18 months. We have selected JP Morgan because they have successful systems to manage invoice flow and administration, and a very strong reputation for quality of customer service.”