Skipton Business Finance is an independent invoice finance provider owned by Skipton Building Society – one of the UK’s largest mutuals. It offers invoice factoring, confidential invoice discounting, and two differentiated products unique to the market: Skipton Select (interest-free factoring with a flat service charge) and LedgerLite (advance up to 50% of your monthly ledger without the full factoring commitment). With no published standalone Trustpilot profile but a 98% self-reported client satisfaction rate, Skipton Business Finance is best assessed by its product range and the parent building society’s 4.6/5 Trustpilot rating. This is our independent review for 2026.
- Mutual ownership structure - Building society backing provides stability and member-focused approach to client relationships
- Best for Yorkshire-based businesses - Regional focus and local relationship management suit businesses preferring face-to-face service
- Advance rates reach 80% - Competitive funding though slightly below Bibby’s 90% maximum advance rate offering
- Minimum £500K turnover - Accessible entry requirements match Close Brothers but exclude smallest business operations
- Personal guarantees typically required - Directors’ security commitments may deter some business owners versus non-recourse alternatives
Skipton Business Finance Review: Key Facts
Skipton Business Finance (FCA FRN: 716444) offers invoice factoring from approximately £300,000 annual turnover, invoice discounting from £500,000, and LedgerLite from £50,000. Maximum facility is £5,000,000. Advance rate is up to 90%. It accepts startups (including a rare 3-month trial period) and sole traders. The parent, Skipton Building Society, holds a 4.6/5 Trustpilot rating (8,444 reviews). Skipton Business Finance has no standalone Trustpilot reviews but claims 98% client satisfaction. The Skipton Select interest-free factoring product – a flat service charge with no discount (interest) charge – is uncommon in the UK market and suits businesses that want predictable, transparent pricing.
You can compare options in our Bibby Financial Services Review.
| Factor | Detail |
|---|---|
| Parent company | Skipton Building Society (UK mutual) |
| FCA FRN | 716444 |
| Trustpilot | No standalone reviews; parent 4.6/5 (8,444 reviews) |
| Min. facility (factoring) | £50,000 |
| Max. facility | £5,000,000 |
| Min. turnover (guideline) | ~£300,000 (flexible – no hard minimum stated) |
| Advance rate | Up to 90% |
| Sole traders | Considered |
| Startups | Yes – 3-month trial period available |
Skipton Business Finance Products
Skipton Business Finance’s four core products: (1) Invoice Factoring – standard facility with Skipton managing credit control, advance up to 90%, from £50,000 facility; (2) Confidential Invoice Discounting – client retains credit control, customers are unaware of Skipton’s involvement; (3) Skipton Select – interest-free factoring where you pay a flat service charge (2–3.5% of factored turnover) rather than a discount rate on top – total cost is predictable and there is no daily interest charge; (4) LedgerLite – advance up to 50% of your monthly invoiced turnover with a simpler facility structure, designed for businesses not ready for a full factoring arrangement. Bad Debt Protection is available as an add-on across products.
Skipton Business Finance Fees and Rates
Skipton Business Finance uses two pricing structures depending on product: standard factoring and discounting use a discount fee (2.00–4.50% above Bank of England base rate for factoring; 1.75–3.50% above base for discounting) plus a service charge. The Skipton Select product replaces this with a flat service charge of 2–3.5% of factored turnover – no discount rate, no daily interest. This is genuinely unusual in the market. Skipton Select’s total cost is easier to budget because it is a fixed percentage of revenue rather than a variable daily interest charge. Specific rates are quoted individually after assessment.
Is Skipton Business Finance Right for Your Business?
Skipton Business Finance is best suited for UK SMEs – including startups, sole traders, and businesses with flexible turnover – that want a relationship-managed invoice finance facility with genuinely differentiated product options. The Skipton Select interest-free product is the strongest unique selling point: if you want completely predictable invoice finance costs with no daily interest charge, Skipton Select is one of very few UK products that deliver this.
The 3-month trial period is also rare and valuable for businesses testing invoice finance for the first time. Skipton is not suitable for businesses with very high facility needs (above £5 million) or those wanting a fully digital self-serve experience without account management.
Pros and Cons
Our Verdict
Skipton Business Finance: Invoice financing solutions with tailored support, expert service, and fast access to working capital. See our review.
