Skipton Business Finance

Skipton Business Finance offers invoice finances services to UK businesses. Find out about the options and how they might suit your business.

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How invoice financing works

The order

Create an invoice for your customer, showing how much is owed to your business and when payment is due.

Cash advance

Send a copy of the invoice to a lender to release up to 100% of its value as a cash sum.

Repayment

When it is due, the lender receives the payment from the customer. The lender then sends your business any remaining amount on the invoice that wasn't originally financed, after deducting the prearranged fees.

This comparison service is provided by Touch Financial. Touch Financial is a finance broker, not a lender. Not all products offered by Touch Financial are regulated by the Financial Conduct Authority. They compare invoice financing services from a range of different lenders, aiming to find the one that best suits the needs of their business customers. Touch Financial consultants look at the profile of each business, including cash flow, accountancy needs, and any other specific requirements, to match them with the most appropriate invoice finance provider and product. Touch Financial is authorised and regulated by the Financial Conduct Authority (FRN:727220).

Last updated on 02 March 2023.

Skipton Business Finance offers invoice finance to UK businesses, helping them access working capital. With Skipton’s invoice finance, you can generally get up to 90% of your invoice within 24 hours, rather than waiting for customers to pay.

Read on below to learn more about Skipton’s key features and customer reviews, and to see if you’re eligible.

Who is Skipton Business Finance?

Skipton Business Finance provides financial services to UK businesses, including invoice factoring and invoice discounting.

Skipton Business Finance Ltd was founded in 2001 and is an owned subsidiary of Skipton Building Society, which was established in 1853.

What services do Skipton Business Finance offer?

Skipton Business Finance is known for its invoice factoring and invoice discounting services. Below, we’ll explain the difference and how they could help your business.

Invoice factoring

Invoice factoring is when you ‘sell’ some – or all – of your outstanding invoices to Skipton Business Finance, who then pays up to 90% of your invoice, usually within 24 hours. The remaining 10% is made available when your customer pays Skipton, minus Skipton’s fees.

Skipton allows you to tweak your invoice factoring by making it:

Confidential – use the White Label service to keep the process private from customers
Disclosed – your customer are aware of Skipton’s involvement
CHOCs – you, the customer, handle the collections
Recourse – Skipton funds your invoices for a set number of days past the due date

Invoice factoring can improve your cash flow by releasing owed funds to your business more quickly. Unlike taking out a loan, invoice factoring doesn’t create any liabilities or debt. Instead, it’s simply receiving an advance on your accounts.

Skipton’s invoice factoring solution could be a quicker way for a business to receive money than waiting for a client to pay an invoice.

While there are no interest fees or renewal fees to worry about, you do pay a service charge fee, depending on your annual turnover. Each relationship with Skipton Business Finance is different, which means the fees will vary from one business to another.

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Invoice discounting

Invoice discounting is similar to invoice factoring. However, with invoice discounting, your business chases the payments and retains control of the sales ledger (the customer account) – not Skipton.

The customer then pays the invoice into an account that’s managed by Skipton, but in your company’s name, meaning the customer does not know of Skipton’s involvement. The whole process is confidential.

The rest of the process is the same as invoice factoring. Skipton gives you up to 90% of the invoice within 24 hours, with the remaining 10% – minus Skipton’s fees – sent once the customer has paid.

How can I apply for funding from Skipton Business Finance?

You can make an inquiry directly on the Skipton Business Finance website. You’ll need to select your annual turnover, choosing from £200,000 to £5 million+, and include contact information.

You can also use the comparison tool on this page to compare invoice finance options from different lenders.

Am I eligible?

Unlike taking out loans or overdrafts, you don’t need an extensive credit history to be eligible for Skipton's invoice finance solutions.

Instead, Skipton looks at your sales ledger to decide whether you can access its invoice finance. Skipton is able to finance businesses ranging from start-ups to corporations generating up to £30 million per year.

What do their customers say?

The reviews below are for Skipton Building Society:

Trustpilot: 4.5/5 from 13,062 reviews
Google Play: 4.6/5 from 1,000 reviews
App Store: 4.7/5 from 4,600 reviews

This information was correct as of 30 May 2022.

Conclusion

Skipton Business Finance could be an option for most UK businesses. It offers a range of invoice finance services to suit businesses of all sizes, while its online tool, My White Label, makes it easy for you to manage your invoices in one place.

There are also various confidentiality options to choose from. Overall, Skipton could be an option to consider if you want flexibility and quick payouts.

With Skipton, your business can receive 90% of your invoice within 24 hours, rather than waiting for customers to pay up.