Skipton Business Finance – reviews, analysis and fees

Last updated on 4 April 2024

Skipton Business Finance is a division of Yorkshire’s Skipton Building Society, offering invoice finance solutions for businesses all over the UK.

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This lender offers a somewhat unique form of lending alongside the more traditional invoice finance, LedgerLite, which offers to loan your a percentage of your monthly sales ledger to maintain cashflow.

This may appeal to many businesses that need to release funds but would rather not involve a third party in their credit control, and makes Skipton Business Finance a viable option for any business that meets the criteria for borrowing from this lender.

Unfortunately, this is where Skipton becomes problematic – a full assessment of your business and sales ledger will be undertaken to decide if you qualify for lending through this business, which can take over 10 days.

Video: Business loans and finance explained

Skipton Business Finance business loans and finance

Pros and cons of Skipton Business Finance for business finance 

ProsCons
LedgerLite is a great addition to traditional invoice finance offerings A full assessment of your business and suitability, which can take 10 days or more, will be required
Cost-effective invoice factoring is also available through Skipton Select All invoices must be processed through Skipton – no picking and choosing
Pays out on successful applications within 24 hours once an account is established All online reviews relate to Skipton Building Society in general, not Skipton Business Finance
Skipton Business Finance pros and cons

Invoice finance

Invoice financing is the only product offered by Skipton Business Finance. You will have three choices:

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Invoice factoring

Skipton Business Finance will essentially replace your finance department, taking over credit control and chasing and receiving payment for all invoices you raise. In return, Skipton will release up to 90% of the value of all invoices within 24 hours of raising, paying the remainder – minus a fee – once the bill is paid by a customer.

Invoice discounting

A confidential way to release up to 90% of invoice funds. Skipton Business Finance will set up a bank account in your business name and you will retain credit control over invoices, so your customers will not know that you have enlisted financial support from a third party. This will cost a little more than invoice factoring.

LedgerLite

An interesting alternative to invoice financing that is comparable to an overdraft. Submit your monthly sales ledger to Skipton Business Finance and agree to a percentage of this to be released in advance (capped at 50%.) Your customers will not need to know that you are working with a third party, and you will still have access to cash flow.

Skipton Business Finance account login

Asset finance 

Not available from Skipton Business Finance. See best asset finance

Commercial mortgages

Not available from Skipton Business Finance. See commercial mortgages.

Business vehicle finance

Not available from Skipton Business Finance. See business vehicle finance.

Merchant cash advance

Not available from Skipton Business Finance. See best merchant cash advance

Business loans 

Not available from Skipton Business Finance. See best business loans

Business credit cards

Not available from Skipton Business Finance. See best business credit cards

Skipton Business Finance key information

Phone number0800 169 5036
App downloadsN/A
Websitewww.skiptonbusinessfinance.co.uk
Number of branches5 offices in the UK
FSCS protected?No
Founded2001
Key information

Skipton Business Finance reviews

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FeefoNot reviewedN/A
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Smart Money PeopleNot reviewedN/A
Which?Not reviewedN/A
Average scoreNot reviewedN/A
Skipton Business Finance reviews and ratings

Business eligibility criteria

Unfortunately, there is no easy answer to this question. Skipton Business Finance takes a customer-focused approach to lending, which is commendable, but it also means that you will need to wait for a lengthy examination of your sales ledger and even a personal visit to your trading premises to learn if you will be eligible for invoice financing through this provider. There are no hard and fast criteria that can be ticked off.

Business finance alternatives

Skipton Business Finance specialises in invoice finance, but is not the only lender in town. If you do not qualify for borrowing from Skipton Business Finance or wish to compare the offer of this lender with a rival that acts with greater speed, consider the following competitors.

  • Bibby Business Finance
  • Close Brothers
  • Creative Capital
  • eCapital Factoring
  • IGF Commercial Finance
  • Kriya
  • Novuna Business Finance
  • Pulse Cashflow Finance
  • Team Factors
  • Time Finance Plc

Additional considerations

Skipton Business Finance is rapidly becoming one of the biggest lenders in the UK, announcing a record-breaking total turnover of £1.8billion among its client group in 2022.

FAQ

How do I apply for finance from Skipton Business Finance?

Call Skipton Business Finance on 0800 169 5036 ASAP to get the ball rolling on opening an invoice finance account with Skipton Business Finance. This lender has a considerably more elaborate process than most rivals, so there is no automated, online application form.

How much can I borrow from Skipton Business Finance?

Lending on an invoice finance basis is capped at 90% of the value of an outstanding invoice, up to £5,000,000. LedgerLite is limited to 50% of your monthly sales ledger.

How quickly will I receive my funds from Skipton Business Finance?

It can take 10 days or longer to have your account with Skipton Business Finance approved and set up. Once this is complete and your invoice factoring or discounting service is active, you should start receiving funds within 24 hours of uploading invoices. Funding related to LedgerLite is calculated and paid monthly.

What fees are associated with borrowing from Skipton Business Finance?

Skipton Business Finance offers invoice factoring on a contracted basis known as Skipton Select. You will pay a set-up fee and a monthly fee based on your turnover. LedgerLIte and invoice discounting will have different price points which will be assigned upon application.

Does Skipton Business Finance set a fixed term for repayments?

If you opt for invoice factoring, there is no set term on repayments as Skipton Business Finance will chase a customer until their debt is settled. Whether that is a good or bad thing depends on your perspective. If you retain your own credit control, Skipton will expect repayment upon the due date of the invoice.

Will I need to secure borrowing from Skipton Business Finance against an asset?

Lending on an invoice financing basis through Skipton Business Finance is an unsecured loan. 

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