BILL Holdings (NYSE:BILL) Q2 2026 Earnings call February 05, 2026 04:30 PM ET Company ParticipantsChris Quintero - VP in Equity ResearchDarrin Peller - Managing DirectorJack Andrews - VP of Investor RelationsJohn Rettig - President and COONate Svensson - Director in Equity Research in the Payments, Processors and IT Services sectorRené Lacerte - Chairman and CEORohini Jain - CFOConference Call ParticipantsAndrew Schmidt - Managing Director and Equity Research AnalystKen Suchoski - US Payments and FinTech An ...

Core Viewpoint - Lloyds Bank is ending its small-business-focused invoice financing program, which is seen as detrimental to its smaller business clients, although the program was utilized by less than 1% of them [2]. Group 1: Program Closure - The factoring program will be closed by the end of the year, as reported by the Financial Times [2]. - The decision to shut down the service follows similar actions by other major banks [4]. Group 2: Impact on Small Businesses - The closure is perceived as a setback for smaller business clients, with some customers indicating that accessing the service had already become more difficult [2][4]. - Nathaniel Southworth, managing director of KAP Toys, noted that stricter revenue and profit criteria from lenders have excluded many small businesses from accessing factoring facilities [3]. Group 3: Industry Context - The factoring business is challenging to run profitably, particularly for small and medium-sized businesses (SMBs), which do not yield substantial profits for banks [5]. - SMBs are increasingly seeking alternative financing methods to compete with larger businesses, with a significant portion of retailers under $500 million in annual revenue prioritizing embedded finance innovations [6]. Group 4: Benefits of Embedded Finance - Embedded finance is seen as a leverage point for smaller retailers, with 68% of those using it reporting gains in operational efficiency [7]. - More than half of the retailers utilizing embedded finance believe it enhances customer journeys and reduces checkout friction, leading to higher conversion rates and improved access to customer data [7].