Selective Invoice Finance

Advance your invoices on an ad hoc basis, no long-term contract required

  • Receive up to 95% of invoice value
  • Sell single or multiple invoices
  • Fast, stress-free funding in 24 hours
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What is Selective Invoice Finance How it works Do I qualify Fees & Charges FAQs

What is selective invoice finance?

Selective invoice finance, also known as spot factoring or single invoice finance, enables businesses to release funds against one or multiple invoices. Unlike invoice factoring or invoice discounting, selective invoice finance doesn’t require you to sell your whole sales ledger.

With this type of invoice finance, no long-term commitments or contracts are necessary. Simply choose which customer payments you’d like to raise money against when cash flow dips. Providing greater flexibility, selective invoice finance can be a convenient way of maintaining healthy working capital in your business and combat seasonal fluctuations or sales dips. Instead of waiting around for payment terms to elapse,you can release up to 95% of the invoice amount immediately.

Once the facility is set up, your business can use it against customer invoices to access a generous cash injection that can be used as you see fit. Whether you need to pay bills, employee wages or start a new project, single invoice finance can be used to support business growth.

Receive up to 95% of the value of your sales invoices

Receive up to 95% of the value of your sales invoice

Selective invoice financing can quickly release up to 95% of the invoice value immediately.

Flexible - Sell single or multiple invoices

Sell single or multiple invoices

Whether you want to use a single invoice or a batch of multiple invoices, selective invoice finance can unlock the funding on a one-off basis.

No long-term contracts

No long-term contracts

Your business will not be tied to any lengthy contracts or pay ongoing fees. It’s flexible - you simply use it as and when required.

Fast funding in 24 hours

Fast funding in 24 hours

Get the money in your account within 24 hours after invoice validation - sometimes in as little as 30 minutes!

No asset security required

No asset security required

The funding is only secured against the invoice, so there's no need to provide additional asset security.

Improve your business cash flow

Improve cash flow

Receiving early payments will help improve your cash flow as you won't have to wait weeks or months for clients to pay.

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Some of the funders we work with

Penny Freedom
Bibby Financial Services
eCapital Commercial Finance

How does selective invoice finance work?

Selective invoice finance is quick and easy to set up. Simply choose the invoice you wish to sell to the spot factoring company and they will instantly make a percentage of the cash available to you. Then, when your customer pays the factoring provider, they will make the final balance available to you, less their fees.

With a selective invoice finance facility there’s no need to lock into any long term, expensive commitments. The beauty of this product is the flexibility it offers businesses that occasionally need a cash flow boost.

Selective invoice finance, step by step:

Advancing your invoices with a selective invoice finance solution is simple. Find out how selective invoice finance works in five simple steps.

Invoice your clients as usual

Sell your products or services to your customers as usual and issue invoices with a 30 to 90-day payment term.

Invoice Finance Step 1 - Invoice your clients as usual
Invoice Finance Step 2 - Choose invoices to sell

Choose an invoice to sell

Once your selective invoice facility is set up, you can choose one or multiple invoices to release cash against. The invoice financier will simply ‘buy’ the debt (providing it is within credit terms) that is owed by your customer.

Will you be selling multiple invoices on an ongoing basis? You might want to check out invoice factoring or invoice discounting (it’s cheaper per invoice!)

Receive up to 95% upfront

After the provider has verified the invoice with your customer, you’ll receive an invoice cash advance up to 95% of the value of your sales invoices in just 24 hours.

Example: If you have a £1,000 invoice, you could get up to £950 upfront to help improve your businesses cash flow.
Invoice Finance Step 3 - Receive  up to 95% upfront
Invoice Finance Step 4 - Customer pays the invoice

Customer pays the invoice

When the invoice is due, the customer pays the invoice to the spot factoring providers’ account.

Depending on the service you have chosen, the provider can manage credit control and chasing customer payments on your behalf, or it can remain with you.

Receive final balance

You’ll then receive the remaining balance, minus any fees agreed with the spot factoring provider.

Invoice Finance Step 5 - Receive final balance

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Does my business qualify for selective invoice financing?

Selective invoice finance is suitable for all types of small businesses that sell goods and services to other companies - including startups and sole traders. Unlike other types of invoice finance products, with selective financing there is no minimum trading term or turnover requirements to worry about!

We can help businesses if they meet the following criteria:

You are a Limited company, LLP or sole trader

Your business is based in the UK or Ireland

You sell to other businesses on payment terms

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What is the cost of selective invoice finance?

Selective invoice finance works the same way as most factoring arrangements. Fees vary between providers, but usually, the fee is a percentage of the total invoice value. With selective invoice finance, you’re under no obligation to factor any other invoices; you have ultimate flexibility over your finances, choose how frequently you sell invoices to maintain a steady cash flow.

The cost is made up of just one fee. You will only pay a...

Discount Fee

Discount Fee

This is the cost of borrowing and is calculated as a percentage of the invoice value.

It’s important to note that a selective invoice facility is more expensive per invoice than ‘whole ledger’ facilities. If you have more than one invoice to sell and require it on a long term basis, it might be more cost-effective to get an invoice factoring or invoice discounting facility.

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SME spot, selective and single invoice finance

Why you should consider using single, selective or spot factoring for your business:

Selective invoice financing is a great option for smaller businesses that are looking to raise customer invoices infrequently. All businesses experience periods of low cash flow every now and then, and during these times, spot factoring can be used to tide a business through. Selective finance can also be utilised when a business needs to release cash from a large invoice to take on or deliver a new project, helping to ensure steady business growth and development.

The ability to dip into a single invoice finance facility gives companies the flexibility to fluidly support themselves through periods of financial difficulty. No business should be held back by waiting for well-deserved money owed, and with selective invoice finance, no business has to! Having an on-demand facility like this means that you can achieve peace of mind when it comes to your business’ finances.

Picture this, you’ve invoiced a client for £50,000, but the terms set out in your invoice state that payment isn’t due for 90 days. If you receive an expected bill, or other customer payments are delayed, you’ve got a shortfall. With a selective invoice finance facility, you can help plug that monetary gap and continue running your business efficiently. Pay wages, rent, bills or hire new team members - whatever you need, this straightforward finance solution can help.

  • No long term contracts or commitments
  • Quickly improves company cash flow
  • Suitable for businesses of all sizes
  • No minimum turnover required
  • Raise invoice on an ad hoc basis
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A fast and flexible way to gain control of your cash flow

At SME Invoice Finance, we help to arrange selective, single and spot factoring agreements for SMEs across the UK. By working with a range of providers, we aim to increase access to finance for as many businesses as possible, while also providing clear and transparent information to help business owners make informed decisions that will benefit their firms’ growth.

As a broker, our service is completely free of charge for you to use. We only work with reputable lenders based in the UK, so you can trust us to connect you with the best selective invoice finance deals out there.

  • Quick application and easy set up
  • Improves your business’s cash flow
  • Straightforward, competitive costs
  • Wait hours instead of days or months
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SME selective invoice finance team

Selective Invoice Finance Frequently Asked Questions

Yes, you can sell single or multiple invoices to a selective invoice factoring company. This flexible solution lets you choose as many or as few invoices as you like. After you’ve sold one invoice, there’s no obligation to sell another; this credit facility puts the control directly into your hands.

Selective invoice finance is a flexible ‘on-demand service’. This means that fees will be considerably higher than if you sold multiple invoices through whole-sales ledger finance facilities like invoice factoring or invoice discounting.

Yes. Selective invoice finance can also be known as spot factoring or single invoice finance. These terms all refer to the same product where you can select one invoice to sell on a 'pay as you go' basis.

You might not want to relinquish credit control to your selective invoice finance company, and that's understandable – you've built personal relationships with your customers, and you want to maintain that.

Although some spot factoring companies will allow you to keep credit control in your hands, some will insist on chasing the end customer for payment.

Selective invoice discounting is a type of selective invoice finance that enables a business to advance customer payments on an invoice-by-invoice basis. However, unlike spot factoring, with selective invoice discounting it remains the business’ responsibility to chase and collect customer payments.

This confidential invoice finance option is better suited to businesses that don’t want to relinquish credit control to the selective invoice finance company.

Selective invoice finance offers businesses several benefits. This type of invoice finance facility is by far the most accessible, enabling companies of all sizes and sectors to advance customer and client payments quickly.

The advantages of selective invoice finance:

  • Unlock money tied in unpaid invoices: Once your selective invoice finance facility is set up, your invoice cash advance usually gets released within 24 hours.
  • Easier for startups and small businesses to access: No minimum turnover or trading term is required, any B2B business can tap into this selective facility.
  • Credit history is not the main determiner in approval: Because you’re advancing money that’s already owed to your business, a poor credit history won’t hold you back.
  • No long-term commitment required: Signing up for a lengthy contract might not be the way you want to handle short periods of lower cash flow. With selective invoice finance, you’re under no obligation to continue raising customer invoices.
  • Eliminate lengthy invoice payment terms: In the UK, the late payment crisis is responsible for thousands of business closures every year. Selective invoice finance provides an immediate solution.

The disadvantages of selective invoice finance:

  • Higher fees and charges: Because of the flexibility this product provides, single invoice finance lenders tend to charge increased fees
  • Only offered on commercial invoices: Unfortunately, invoice finance facilities can only be used by B2B businesses
  • Lack of in-house credit control: With spot factoring, you relinquish your credit control processes. This has the potential to impact a business’ relationship with its customers

The majority of selective invoice providers will offer Bad Debt Protection (BDP) as standard practice. This protects you and your business against any potential losses caused by a customer not being able to pay.

Without BDP insurance, you’ll likely be liable to pay if you find yourself dealing with a problematic customer, so it’s important to check this with the provider during the application process.

Usually, a selective invoice financing company won’t credit check your business. However, they will run credit checks against your potential customer(s) to identify risk and reduce the chances of overdue or unpaid invoices.

Whenever you seek business finance, you should always compare providers to ensure you’re getting the most competitive deal on the market. This is particularly important for selective invoice financing, a service that tends to come with higher fees and additional charges.

We understand that comparing selective finance providers can take up a considerable amount of time, and for business owners, time is money. When you apply through SME Invoice Finance, there’s no need to research providers - we do the ground work for you to ensure you receive the best rate possible. All you need to do is apply now.

We help support UK businesses grow

Proud to support Britain's Businesses

Since 2014, we've helped many businesses, large and small, get access to the working capital they need through invoice financing.

Selective invoice finance will suit the majority of UK SME sectors

We can help any UK business that invoices other companies on credit terms for the goods and services that they provide.

Get your free, tailored, no-obligation quote today

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