Skipton Business Finance vs Close Brothers Invoice Finance

Skipton Business Finance, part of Skipton Building Society Group, provides invoice finance and related working capital products for UK SMEs, including invoice factoring, invoice discounting and asset based lending, as shown on its business finance overview. Close Brothers Invoice Finance, part of Close Brothers Group, provides a similar mix of invoice finance and asset based lending facilities, described on its invoice finance product page and its asset based lending page.

Both lenders focus on unlocking cash tied up in unpaid invoices rather than providing standard unsecured term loans. The difference is less about whether they offer invoice finance and more about how they structure facilities, what size of business they appear to target, and how complex the funding requirement is likely to be.

1. Products and terms at a glance

Both lenders focus on invoice finance rather than unsecured loans. In simple terms, they advance money against unpaid invoices and recover the advance when the end customer pays.

Skipton Business Finance

• Invoice factoring: Skipton advances funds against invoices and can also provide credit control support, as described on its invoice factoring page.
• Confidential invoice factoring: Skipton also offers a confidential structure, shown on its confidential factoring page.
• Invoice discounting: The business keeps control of collections while borrowing against unpaid invoices, based on its invoice discounting page.
• Asset based lending: Skipton references ABL as part of its broader working capital proposition on its business finance overview.
• Branded variants: Skipton Select and LedgerLite are presented on its homepage as simplified or entry-level invoice finance options.

Skipton’s public content gives the impression of a provider that wants to be accessible to a wide SME audience, including smaller firms that may not meet the criteria of larger banks. Its small business invoice discounting guide reinforces that positioning.

Close Brothers Invoice Finance

• Invoice finance: Close Brothers offers invoice discounting and factoring through its invoice finance page.
• Invoice discounting: More detail is given on its invoice discounting page.
• Asset based lending: Close Brothers puts stronger visible emphasis on ABL, especially for larger companies, on its ABL page.
• Group support: Its wider group pages, including the group invoice finance page, show how invoice finance sits within a broader banking group.

Close Brothers explicitly states that its ABL proposition is primarily aimed at companies with turnover above £5 million on its ABL page. That makes the product mix look more naturally aligned with established firms and more complex structures.

High-level product comparison

• Both lenders provide factoring and discounting.
• Skipton appears more visibly geared toward smaller and owner-managed SMEs.
• Close Brothers appears more visibly geared toward larger and more structured ABL situations.
• Both are backed by established UK financial groups, which may matter to borrowers that value institutional backing.

2. Costs and repayments in practice

Neither lender publishes a full public pricing table. In both cases, fees and advance rates are described at a high level, with exact pricing dependent on the facility and the borrower.

Illustrative comparison table

Invoice finance does not behave like a normal term loan. The lender advances part of the invoice value up front, then recovers that advance when the debtor pays. Cost therefore depends heavily on how much is drawn, how long it stays drawn, and what fees are attached to the facility.

Worked example 1, factoring facility

This example is illustrative only and does not represent a quote from either lender.

• Annual turnover: £1.2 million
• Eligible invoices outstanding: £100,000
• Average advance rate: 80%
• Illustrative annual fee impact: 4% of turnover

Under those assumptions, the business could draw around £80,000 against the £100,000 ledger. When the customer pays, the lender repays the advance, deducts its charges and returns the remaining balance. If total annual fees were 4% of turnover in this example, the annual cost would be £48,000. Actual pricing may be lower or higher depending on the facility.

Worked example 2, asset based lending structure

This example is also illustrative only.

• Business turnover: £10 million
• Receivables: £2 million
• Stock: £1 million
• Plant and property: £3 million
• Illustrative advance rates: 80% on receivables, 50% on stock

That could produce a revolving receivables and stock facility of around £2.1 million, plus a separate property-backed element depending on valuation and structure. This is the type of arrangement Close Brothers highlights more explicitly on its ABL page, although Skipton also references ABL in its own product overview.

3. Speed and service

Neither lender publishes standard application-to-funding timescales, so speed should be treated as deal dependent.

Skipton Business Finance service model

Skipton’s public content places a lot of emphasis on guidance, education and relationship support. Its Information Hub, provider comparison guide, contact page and complaints procedure all reinforce the sense of a relationship-led and regional service model.

Close Brothers Invoice Finance service model

Close Brothers also presents itself as relationship-focused, but with a more structured and bank-backed feel. Its About Us page, CloseNet FAQs, financial difficulty support and complaints page suggest a stronger operational and portal-led structure once a facility is in place.

For both lenders, more complex ABL facilities are likely to take longer than simple factoring or discounting arrangements because of collateral reviews, legal documentation and due diligence.

4. Who each lender suits

Because fixed published eligibility data is limited, the best way to think about fit is through positioning rather than strict rules.

Skipton Business Finance may suit:

• small and mid-sized SMEs that want relationship-driven support
• businesses that value outsourced credit control through factoring
• firms attracted to simplified products such as Skipton Select
• borrowers that prefer a provider visibly geared toward smaller businesses

Close Brothers Invoice Finance may suit:

• larger SMEs with turnover above £5 million considering ABL
• businesses needing higher limits or multi-asset structures
• firms with stronger reporting capability and more complex funding needs
• borrowers that want a provider sitting within a broader banking group

That does not mean one lender cannot serve businesses outside those patterns, but those are the clearest signals in the public material you supplied.

5. How to apply

Skipton Business Finance

Skipton provides an online proposal route on its proposal page, alongside phone and regional contact options on its contact page. Based on its public materials, a typical process is likely to include:

• submitting an enquiry or proposal
• providing business and financial information
• review of the sales ledger, sector and customer concentration
• issue of facility terms and legal documents

Close Brothers Invoice Finance

Close Brothers invites enquiries through its invoice finance page and contact page. Based on the supplied content, a typical process is likely to include:

• initial discussion with a relationship or sales contact
• submission of accounts, debtor information and wider collateral data if relevant
• review of risk, facility size and structure
• onboarding into CloseNet and ongoing facility management

In both cases, exact approval and go-live timing will vary depending on complexity.

6. Final verdict

Both Skipton Business Finance and Close Brothers Invoice Finance are credible, established providers backed by long-standing UK financial institutions. The real choice is not about brand alone, but about the type of funding relationship the business needs.

Choose Skipton Business Finance if:

• you are a small or mid-sized SME that values hands-on relationship support
• you want factoring or discounting with a more SME-friendly positioning
• you may benefit from simpler product options like Skipton Select
• your core need is straightforward receivables funding rather than complex multi-asset ABL

Choose Close Brothers Invoice Finance if:

• your business has turnover above £5 million and needs more structured ABL options
• you want higher limits or broader collateral-based funding
• you value a lender embedded in a wider banking group
• you are comfortable with a bespoke and more negotiated facility structure

For many businesses, the most useful next step is to obtain indicative terms from both lenders and compare not only price, but also advance rates, covenants, reporting requirements and service style.

7. Sources

• Skipton Business Finance homepage
• Skipton Business Finance business finance overview
• Skipton invoice factoring page
• Skipton confidential invoice factoring page
• Skipton invoice discounting page
• Skipton invoice discounting for small businesses guide
• Skipton invoice finance FAQs
• Skipton Information Hub
• Skipton complaints procedure
• Skipton contact page
• Skipton proposal form
• Skipton Guide to Factoring PDF
• Skipton Guide to Invoice Discounting PDF
• Skipton provider selection guide
• Close Brothers invoice finance page
• Close Brothers invoice discounting page
• Close Brothers asset based lending page
• Close Brothers About Us page
• CloseNet FAQs
• Close Brothers financial difficulty support
• Close Brothers complaints procedure
• Close Brothers contact page
• Close Brothers group invoice finance overview
• Close Brothers SME Finance Charter
• Capitalise 2026 invoice finance comparison
• Hello Aria 2026 invoice finance providers guide
• Funding Agent Close Brothers comparison post
• Funding Agent Skipton Business Finance review