Skipton Business Finance

What Skipton Business Finance does

Skipton Business Finance is a UK specialist lender providing invoice finance and asset-based lending to small and medium enterprises. Founded in 2001 and headquartered in Skipton, North Yorkshire, the firm is a wholly owned subsidiary of Skipton Building Society (the UK's fourth largest building society, established 1853) and operates from five regional offices covering Skipton, Leeds, Manchester, Birmingham, and Bracknell. Its core products include Invoice Factoring, Invoice Discounting, and the recently launched Asset Based Lending (ABL) proposition, supplemented by sub-products such as CHOCS Invoice Factoring, Confidential and Disclosed variants, and government-backed schemes including the Growth Guarantee Scheme and Enterprise Finance Guarantee. SBF also offers differentiated products such as LedgerLite, a lightweight facility accessing up to 50% of monthly sales ledger, and Skipton Select, an interest-free invoice factoring solution.

The business is built on a relationship-led, sales-led go-to-market model, with dedicated Relationship Managers for each client and a parallel channel of accountants, brokers, and intermediaries (including Evolve Business Finance). Underlying technology is the third-party Dancerace software for client facility management, with no disclosed AI or ML capabilities. In 2025 the firm reported a record profit before tax of £11.6m, fee and commission income of £16.9m, loans and advances of £200.6m, and a client base of 887 SMEs, with a £500 Love2Shop client referral programme supplementing its intermediary-led demand generation.

Name

Skipton Business Finance

Legal name

Skipton Business Finance Ltd.

Website

https://skiptonbusinessfinance.co.uk

Company type

Private

Founded year

2001

Operating status

Operating

Headcount range

51–100 employees

Short description

Skipton Business Finance is a UK-based invoice finance and asset-based lending provider serving SMEs with turnovers up to £30m, operating as a wholly owned subsidiary of Skipton Building Society. Founded in 2001, it offers factoring, discounting, ABL, and government-backed lending from five regional offices.

Ownership category

akta.pro rank

Product category

Invoice Finance and Asset Based Lending

NAICS

Other Nondepository Credit Intermediation (52229)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Receivables Finance (Factoring, Invoice Discounting, Forfaiting) (FSABAHAD)

akta.pro secondary industries

Invoice Financing & Factoring (FSAKAGAC), Invoice Financing, Factoring & Receivables Management (FSAGAJAB)

Keywords

• Invoice finance
• Invoice factoring
• Invoice discounting
• Asset based lending
• Working capital lending

Headquarters

HQ city

Skipton

HQ country

United Kingdom

HQ region

Europe

Offices5 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Invoice Finance Fees: Fees charged on invoice finance facilities, advancing up to 90% of invoice value and charging for the service. Fee and commission income of £16.9m in 2025.
2. Asset Based Lending: Asset-based lending facilities up to £25m combining invoice discounting with cashflow loans for larger SME funding needs.
3. Bad Debt Protection: Optional protection product protecting businesses from customer payment failures, generating additional fee income.
4. Growth Guarantee Scheme: Government-backed lending scheme with 70% guarantee, available alongside invoice finance facilities.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

Skipton Business Finance is a UK-based invoice finance and asset based lending provider that releases working capital tied up in unpaid invoices for SMEs. Core offerings include Invoice Factoring (up to 90% prepayment with credit control), Invoice Discounting (confidential, client retains credit control), and Asset Based Lending (facilities up to £25m using receivables, stock, property, machinery, or cashflow loans). Supporting products include LedgerLite (lightweight sales ledger access), Skipton Select (interest-free factoring), Bad Debt Protection, and accredited distribution of government-backed lending schemes.

Product overview

Skipton Business Finance offers a suite of working capital and business finance solutions primarily centered around Invoice Finance products. The core offerings include Invoice Factoring (with credit control), Invoice Discounting (confidential, maintaining client credit control), and Asset Based Lending (ABL) for larger SME needs. Supporting products include LedgerLite (lightweight sales ledger access), Skipton Select (interest-free factoring), and Bad Debt Protection. Government-backed schemes supported include the Growth Guarantee Scheme, Enterprise Finance Guarantee, and legacy COVID support schemes. The company funds businesses ranging from new-starts to £30m annual turnover, with facilities available up to £25m for ABL.

Differentiator

Problem solved

Functional benefit

Brands

• LedgerLite: Facility allowing access to an agreed percentage of monthly sales ledger with low administration and easy use, similar to an overdraft.
• Skipton Select
• Bad Debt Protection (BDP)
• CHOCS Invoice Factoring

Products and services

• Invoice Factoring A facility providing up to 90% of the value of unpaid invoices alongside a credit control function to handle chasing customer payments. For UK SMEs needing to improve cashflow.
• Invoice Discounting A confidential facility releasing working capital against unpaid invoices while the client maintains full control over credit control and collection of customer payments. For UK SMEs that want working capital without disclosing the finance arrangement.
• Asset Based Lending (ABL) Unlocks working capital for UK SMEs using receivables, stock, property, machinery, or cashflow loans with facilities up to £25m. For mid-market SMEs with complex funding needs.
• LedgerLite Provides access to an agreed percentage (up to 50%) of monthly sales ledger with low administration and easy use, functioning like an overdraft. For UK SMEs needing lightweight working capital.
• Skipton Select Interest-free Invoice Factoring solution with a simple fee structure where customers pay only a set-up fee and service charge set by turnover. For UK SMEs wanting transparent, interest-free factoring.
• Bad Debt Protection (BDP) Protects businesses from the risk of customers failing to pay money owed, covering potential bad debt losses. For UK SMEs seeking protection against customer default.
• Growth Guarantee Scheme (GGS) Government-backed scheme designed to support access to finance for UK SMEs as they look to invest and grow, available alongside Invoice Finance facilities.
• CHOCS Invoice Factoring A factoring variant where the client maintains primary telephone communication with customers while SBF handles statements and letters. For SMEs that want to keep direct customer contact.
• Confidential Invoice Discounting Releases up to 90% prepayment against unpaid invoices with debtors never made aware of the lender's involvement. For SMEs that require fully confidential invoice finance.
• Disclosed Invoice Factoring Factoring arrangement where debtors are informed about the arrangement on the invoice. For SMEs that are happy for the finance arrangement to be disclosed.
• Disclosed Invoice Discounting Discounting arrangement with disclosed involvement to debtors. For SMEs that want a transparent invoice finance arrangement.
• Recourse Invoice Factoring Factoring where the client retains the risk of non-payment by debtors. For SMEs that accept credit risk on their customer book.
• Recourse Invoice Discounting Funding invoices for a pre-determined number of days past their due date, with the client bearing the recourse risk. For SMEs that want lower-cost discounting in exchange for retaining credit risk.
• Enterprise Finance Guarantee (EFG) Government guarantee scheme providing up to 75% guarantee against outstanding facility balance to support lending to smaller businesses unable to meet normal commercial requirements.
• Coronavirus Business Interruption Loan Scheme (CBILS) Government-backed scheme (now closed) providing up to £5m facility alongside Invoice Finance to support businesses during COVID-19.
• Bounce Back Loan Scheme (BBLS) Government-backed loan scheme (now closed) supporting UK businesses during coronavirus with a fixed interest rate of 2.5%.

Quantifiable outcome

• 98% client satisfaction rate
• +2 more outcomes

Named customers7 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Four partnerships are on record, tiered core and minor.

• British Business BankcoreStrategic or Co-development Partner · 1 July 2024Skipton Business Finance is an accredited lender for government-backed schemes including Growth Guarantee Scheme (GGS), Enterprise Finance Guarantee (EFG), Coronavirus Business Interruption Loan Scheme (CBILS), and Bounce Back Loan Scheme (BBLS). These schemes provide partial government guarantees to enable lending to SMEs that might not meet normal commercial criteria.
• SMH MitchellsminorImplementation/ SI/ Consulting PartnerAccountancy and business advisory firm that provided specialist guidance on the Peak Electrical Supplies MBO, working collaboratively with SBF to structure the funding package.
• Evolve Business FinanceminorChannel Partner/ Reseller/ DistributorIntermediary that facilitated the £450,000 facility for EA First recruitment firm, acting as a referral partner for SBF.
• UK FinanceminorOthersSBF is a member of UK Finance and abides by their Invoice Finance and Asset Based Lending Code. Complaints can be escalated through UK Finance Independent Complaints Process.

Scale indicators8 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• Bibby Financial Services: One of the UK's largest independent invoice finance and ABL providers, offering factoring, discounting, and asset-based lending to SMEs. Closely comparable in product mix, customer segment, and UK-only focus, though at materially larger scale than Skipton Business Finance.
• Aldermore Invoice Finance: UK challenger-bank-owned invoice finance provider serving SMEs with factoring, discounting, and asset-based lending products. Direct competitor in the same SME segment with similar relationship-led distribution and pricing structure.
• Close Brothers Invoice Finance: Specialist UK invoice finance and ABL provider serving SMEs with a multi-product suite including factoring, discounting, and asset-based lending. Comparable in customer segment, regional office footprint, and product breadth.
• IGF Group: UK-based specialist in working capital finance offering invoice discounting, factoring, asset-based lending, and stock finance to SMEs. Direct competitor with comparable ticket sizes, product structure, and SME client profile.
• Hitachi Capital Invoice Finance (now Marqeta UK / Mitchells & Butlers legacy operations): UK invoice finance provider offering factoring and discounting to SMEs, with similar regional office model and product portfolio. Comparable in target customer, facility sizing, and distribution through brokers and direct sales.
• ThinCats: UK specialist business lender offering asset-based lending, invoice finance, and growth capital to SMEs and mid-market. Directly comparable on ABL product (an SBF executive joined from ThinCats), with similar customer segment and facility sizing.
• ABN AMRO Commercial Finance (UK): UK operations of Dutch bank's commercial finance division, offering invoice discounting, factoring, and asset-based lending. Direct competitor with several SBF senior hires having joined from ABN AMRO Commercial Finance, indicating a tightly overlapping talent and product market.

Broad incumbents

• HSBC Invoice Finance (UK): Large bank-owned invoice finance provider offering factoring, discounting, and broader working-capital solutions as part of HSBC UK's commercial banking franchise. Overlaps with SBF on product and SME segment but operates at far greater scale and with cross-sell to broader banking products.
• Lloyds Bank Commercial Finance: Major UK bank's invoice finance and asset-based lending arm, offering factoring, discounting, and ABL to SMEs and mid-market. Same core products and customer segment, but with materially larger balance sheet, broader product cross-sell, and national distribution.

Emerging players

• MarketInvoice (a Funding Circle company): Digital-first UK invoice finance platform acquired by Funding Circle, offering online factoring and discounting to SMEs. Comparable in underlying product (invoice finance) but materially differentiated by technology-led onboarding and pricing, representing the digital-native competitive threat to SBF's relationship-led model.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/skipton-business-finance
• Xx.com/SkiptonBF
• Facebookfacebook.com/SkiptonBF

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments4 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Skipton Business Finance