Selective Invoice Finance

Flexibility – you only send over invoices that you require funding against

Short term – they are great for short term cash injections into the business

No minimum fees – lenders do not charge a monthly minimum fee in most cases

Pay as you go – only pay for invoices you receive funding against

Rates – selective invoice finance providers often charge more per invoice compared to a traditional invoice finance lender

Verifications – most selective invoice finance lenders must verify each invoice with your client before releasing funds to your business

Cash injection – because you only factor a sample of invoices, you do not receive as much working capital as you would with a full factoring facility

This is the same as selective invoice finance and allows a business to select a sample of invoices they wish to receive funding against.

Selective invoice finance could be a great way to inject working capital into your business if it is just a short-term requirement. You must consider that all lenders work to credit limits on your clients, so you cannot just send the lender the invoices or clients you have concerns about.

Speak to Contact Business Finance today and we will put your business in contact with the most suitable lender.

All we need to do is have a 15-minute conversation to find out more about your business and your funding requirements.

This depends on whether you choose a disclosed or non-disclosed type of facility. Most selective invoice finance lenders only offer a fully disclosed facility which means your clients will know that you are using a lender. A non-disclosed facility will allow your business to keep the facility confidential to your client.

Any business that raises an invoice to another business on credit terms can apply for a selective invoice finance facility. Generally, we find that selective invoice finance facilities are only cost effective if a client only require a facility short term. Or, if they only want to include one client in a facility and raising the cash from this specific clients’ invoices will more than give them enough working capital to trade efficiently.

Yes, that is the whole purpose of choosing this form of invoice finance. It allows a business to pick specific invoices to fund against as opposed to include whole of turnover. It is worth noting that facilities are available on a whole turnover basis, where you can not include certain client invoices. For example, they might pay after 7 days, or you might not want the lender to have any interaction with the client.

No, not all lenders offer such a facility and require you to include all your sales invoices in a facility. This is why it is important to use a broker that can put your business in contact with the most suitable lender from the outset and not waste any time.

There is no limit for some lenders. This is if the job sign off is strong and will always make the invoice enforceable. This gives selective invoice finance lenders great comfort as it increases the chance of them collecting the debt owed by your client, no matter what scenario.