Skipton Business Finance launches asset based lending

Skipton Business Finance, the commercial finance arm of Skipton Building Society, has launched its asset based lending proposition with a five million pound funding deal for a West Midlands steelworks contractor. The facility was completed in May two thousand twenty six and uses invoice discounting plus a Growth Guarantee Scheme cash flow loan, after advice from Quantuma.

Skipton Business Finance completes a five million pound asset based lending launch for a West Midlands steelworks contractor

The first deal combines a three point five million pound invoice discounting line with a one point five million Growth Guarantee Scheme cash flow loan. Skipton said this marks a step beyond its more traditional invoice finance into multi product asset based lending for larger and more complex SME needs.

Why this Skipton asset based lending move matters for UK SME working capital

Asset based lending can be a practical option when a business needs faster access to cash against real trading assets, rather than waiting for a conventional bank to approve a new risk appetite. This matters because UK Finance data shows its invoice finance and asset based lending members were advancing just under twenty one billion pounds to client businesses, according to the sector body.

It also lands as many firms remain under pressure to fund growth. According to Lovey's SME Outlook, eighty one percent of UK small businesses missed at least one growth opportunity in two thousand twenty five due to inadequate finance. A blended facility can help borrowers smooth cash flow when orders, supplier bills, and payment terms do not line up.

Which businesses are most likely to look at Skipton Business Finance asset based lending first

The initial borrower is a Midlands steelworks contractor, so the early focus is likely to be on firms with steady invoice flow and clear working capital needs. In practice, this type of structure is often relevant for manufacturing, construction supply chains, and other businesses where customers pay in instalments and the order book drives cash timing.

Skipton also points to its team build out, including Kim Hughes as Head of asset based lending and Ben Pittam as Regional Sales Director, which suggests it wants to talk to brokers and accountants serving mid market clients.

The figures behind Skipton Business Finance invoice discounting and Growth Guarantee Scheme cash flow lending

Skipton's facility is a five million pound package in total, split between three point five million pounds of invoice discounting and one point five million pounds via the Growth Guarantee Scheme. It follows a record trading backdrop, with Skipton Business Finance already reporting a record eleven point six million pounds profit before tax for two thousand twenty five, according to the company's reporting.

UK Finance also notes that its IF and ABL members were supporting business finance demand through advances of nearly twenty one billion pounds. Meanwhile, the British Business Bank said challenger and specialist banks account for sixty percent of gross SME lending in its small business finance markets analysis.

What happens next for borrowers as Skipton completes a second asset based lending transaction

Skipton said it has since completed a second asset based lending transaction of five point five million pounds, which signals faster momentum than many ABL launches. For SMEs, the practical question is how quickly lenders can move from a first transaction to more consistent underwriting decisions.

If you are considering this route, start by stress testing your sales ledger, because invoice discounting depends on the quality of invoices and payment patterns. For background on how invoice finance and asset based lending works, see UK Finance guidance on invoice finance and asset based lending. For details on the Growth Guarantee Scheme, use British Business Bank information on the Growth Guarantee Scheme.

Finally, keep an eye on broker and lender signposting, since Skipton has published its ABL launch updates through its own press page, including Skipton Business Finance on the five million pound ABL launch deal.