Skipton Business Finance review: invoice finance and working capital for UK businesses

Skipton Business Finance is the invoice finance and working capital arm of the Skipton Group, which is owned by Skipton Building Society. It has spent around 25 years helping UK small and medium sized businesses turn unpaid invoices into cash, and is known for a relationship led service rather than call centres. Smart Funding Solutions is an independent broker and is not part of Skipton Business Finance. Skipton Business Finance is one of the lenders on our panel, so we can compare its facility with other invoice finance providers for you.

01About Skipton Business Finance

Skipton Business Finance is a subsidiary within the Skipton Group, whose parent, Skipton Building Society, traces its roots back to 1853. That building society ownership gives it a different background from bank owned or private equity backed invoice financiers.

It has offices in Skipton, Leeds, Manchester, Birmingham and Bracknell and says it works with businesses from Scotland to Cornwall. Its stated approach is simple: no call centres and no automated assistants, just people who get to know each client's business. It reports high client satisfaction in its own surveys.

02What Skipton Business Finance funds

Skipton's range is built around invoice finance, with some wider working capital options:

Its factoring range includes disclosed, confidential and recourse options, so you can choose how visible the facility is to your customers and who carries the risk of bad debts. If you are unsure which suits you, our guide to invoice factoring and our page on invoice discounting explain the trade-offs.

Larger businesses with stock, plant or property alongside their debtor book may be better served by its asset based lending facility. Pricing depends on turnover, the quality of your customers and the service you choose, so we do not quote it here.

03Who Skipton Business Finance suits (and who it may not)

• Good fit: B2B businesses that invoice other companies on credit terms and want to release cash tied up in their sales ledger.
• Good fit: owners who value a named relationship manager and a local office over a purely online service.
• Good fit: growing firms that may later need a larger asset based facility from the same provider.
• Less likely to fit: businesses that sell mainly to consumers or take payment upfront, as there is no invoice book to fund.
• Less likely to fit: companies that only want to fund the odd invoice now and then, where selective invoice finance may be simpler.

04What Skipton Business Finance looks at

Skipton does not publish a single checklist. Invoice financiers typically review:

• An aged debtor and creditor list, showing who owes you what and for how long.
• Your customer base: spread, creditworthiness and any concentration on one or two customers.
• Recent accounts and management information.
• Your terms of trade, contracts and how invoices are raised.
• Credit notes, disputes and any history of bad debt.

Because the security is your sales ledger, the quality of your customers often matters more than the size of your balance sheet. A tidy ledger with clear terms and few disputes is the best preparation.

05Pros and cons

Pros

• Owned by a long established building society group.
• Wide range, from simple ledger funding up to asset based lending of £25 million.
• Choice of factoring, confidential discounting and bad debt protection.
• Regional offices and a people first service model.
• Around 25 years of experience in UK invoice finance.

Cons

• Only relevant if you sell to businesses on credit terms.
• Invoice finance facilities usually involve a contract period and notice terms.
• Factoring means your customers deal with Skipton for payment, which some owners dislike.
• Costs vary widely by case, so you need comparable quotes to judge value.

Because the security is your sales ledger, the quality of your customers often matters more than the size of your balance sheet.

06Applying through a broker vs going direct

Invoice finance agreements look similar on the surface but differ in the detail: advance rates, contract length, notice periods, minimum fees, concentration limits and how disputed invoices are treated. Our guide to invoice finance costs covers what to check.

We compare Skipton with other invoice financiers on your behalf, present your ledger to the providers most likely to fit, and manage one application. It is free to enquire; any broker fee is disclosed separately before you proceed. Use our Instant Quotes tool to compare lenders in minutes.

07Alternatives to Skipton Business Finance

• Bibby Financial Services is a large, well known invoice financier and worth a side by side quote.
• Ultimate Finance is another established provider worth comparing, particularly for smaller facilities.
• Close Brothers is an option for businesses that would like invoice finance from within a wider banking group.

You can read more on Skipton Business Finance's website. Any finance firm can be checked on the FCA Register.