Skipton Business Finance Limited, founded in 2001 and regulated by the Financial Conduct Authority (FCA FRN 716444) as a subsidiary of Skipton Building Society, specialises in invoice finance solutions for UK-based SMEs. It offers working-capital facilities nationwide, focusing primarily on invoice-backed products. This lender is generally suitable for business-to-business firms with turnovers between £300,000 and £30 million looking for tailored invoice finance options but does not offer term loans or asset finance. For a broader understanding of invoice finance options, please see invoice financing and invoice factoring.
Key Features of Skipton Business Finance Limited
Skipton Business Finance provides practical facilities focusing on invoice finance products with features that support efficient cash-flow management and risk mitigation.
- Client Online portal with 24/7 ledger visibility and online funding requests; learn more about invoice financing.
- Optional bad-debt protection integrated into facilities to reduce debtor default risk.
- Dedicated relationship managers offer personalised client support across the UK.
- Credit-checking tools assist in monitoring debtor risk; see invoice factoring insights.
- White-label programme enables partners to offer branded invoice finance services.
Eligibility Requirements for Funding
You may qualify for Skipton Business Finance products if your business generally has at least six to twelve months trading history and an annual turnover close to £300,000 or more. Recruitment finance options may consider younger businesses with solid contracts. Businesses must operate in the UK and invoice other businesses rather than retail consumers. Personal guarantees and debentures are often required for directors. To understand qualifications better, review our guide on qualifying for a business loan and the role of personal guarantees.
Loan Options at Skipton Business Finance
Skipton Business Finance Limited offers a range of invoice finance products tailored to various SME needs. Below is an overview of major loan types available.
- Invoice Factoring: Facilities from £50,000 to £5,000,000 with up to 90% advance on invoice values, 12-month renewable terms, and discount fees typically between 2.00% and 4.50% over the base rate on funds in use. More details at invoice factoring.
- Confidential Invoice Discounting: £100,000 to £5,000,000 facility limits with up to 90% advance, maintaining customer confidentiality. Terms are rolling for 12 months with discount margins of 1.75% to 3.50% above base. Read about invoice discounting.
- CHOCCS (Client Handles Own Collections Service): Facilities from £50,000 to £2,000,000, up to 85% advanced, blending confidentiality with flexible SBF support. Discount fees range from 2.25% to 4.50% over the base.
- Construction Finance: £100,000 to £3,000,000 with up to 70% advance on certified invoices or applications for payments. Fees and discount rates are higher, adapting to sector specifics.
- Recruitment Finance: £50,000 to £2,500,000 available for invoice advances up to 90%. Discount fees range from 2.00% to 4.00% over base. Comes with integrated payroll services.
- Trade Finance (linked to invoice finance): Revolving lines from £50,000 to £1,000,000, up to 60% advance against verified purchase orders. Term up to 180 days with discount fees between 2.50% and 4.50%. More on trade finance.
- My White Label Invoice Finance: £50,000 to £5,000,000 via introducers under their own branding, using Skipton's systems and underwriting.
How to Apply
Expect a primarily online application process with dedicated support for document submission and queries. Decision times are typically within a couple of days following a full submission, and funding is often available within a week.
- Submit an initial enquiry online or by phone, followed by financial documentation; see the general loan application process.
- Provide documents including recent management accounts, aged debtor lists, bank statements, incorporation papers, and director identification.
- Review indicative heads of terms within 24 to 48 hours after receipt of necessary paperwork.
- Complete agreement signing digitally or in consultation with your relationship manager.
Funding Agent’s View on Skipton Business Finance Limited
Skipton Business Finance is a niche provider focused on invoice finance, fitting SMEs with stable B2B invoice volumes and turnovers starting around £300,000. Its sector-specific underwriting and online management tools suit firms with growing or complex debtor books. However, its product range does not extend to term loans or asset finance, making it less suitable for some types of businesses. The use of personal guarantees and contractual tie-ins means borrowers should carefully assess the risk and flexibility aspects. To explore funding options and check your eligibility, visit our business loan qualification guide and interest rate explanations.
