Skipton Business Finance is a division of Yorkshire’s Skipton Building Society, offering invoice finance solutions for businesses all over the UK.
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.
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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.
Skipton Business Finance business loans and finance
- Pros and cons
- Invoice finance
- Asset finance
- Commercial mortgages
- Business vehicle finance
- Merchant cash advance
- Business loans
- Business credit cards
- Skipton Business Finance key information
- Skipton Business Finance reviews
- Business eligibility criteria
- Business finance alternatives
- Additional considerations
- FAQ
Pros and cons of Skipton Business Finance for business finance
| Pros | Cons |
|---|---|
| ✓ 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 |
Invoice finance
Invoice financing is the only product offered by Skipton Business Finance. You will have three choices:
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.
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 number | 0800 169 5036 |
| App downloads | N/A |
| Website | www.skiptonbusinessfinance.co.uk |
| Number of branches | 5 offices in the UK |
| FSCS protected? | No |
| Founded | 2001 |
Skipton Business Finance reviews
| Review platform | Score | Number of votes |
|---|---|---|
| TrustPilot | Not reviewed | N/A |
| Feefo | Not reviewed | N/A |
| Reviews.io | Not reviewed | N/A |
| Smart Money People | Not reviewed | N/A |
| Which? | Not reviewed | N/A |
| Average score | Not reviewed | N/A |
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
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.
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.
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.
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.
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.
Lending on an invoice financing basis through Skipton Business Finance is an unsecured loan.