Selective Invoice Finance

On demand funding with no long-term contract

  • Receive up to 95% of invoice value
  • Sell single or multiple invoices
  • Fast, stress-free funding in 24 hours
Apply Now

Quick Decision with No Obligation

Proud to support Britain's Businesses
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 you 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.

Selective invoice finance can be a convenient way of maintaining healthy cash flow in your business, particularly if it’s seasonal. This means you don’t have to wait around for invoice payment; 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 the cash to pay bills, employee wages or for starting a new project, single invoice finance can support your business as it grows.

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.

Apply Now

Quick Decision with No Obligation

Some of the funders we work with

Penny Freedom
iwocaPay
GapCap
Market Finance
Satago
Creative Capital Solutions

How does selective invoice finance work?

This type of finance is quick and easy to set up. Select the invoice you wish to sell to the spot factoring company; the lender will make the cash advance available to you and, when the end customer pays, the factoring company will take the money and make the balance available to you, less their fees.

1
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

2
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!)

3
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

4
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.

5
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

Get your free, tailored, no-obligation quote today

Apply Now

Quick Decision with No Obligation

Do I qualify for selective invoice finance?

Selective invoice finance is suitable for all types of small businesses, including startups and sole traders that sell goods or services to other companies. 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

Apply Now

Quick Decision with No Obligation

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.

Get your free, tailored, no-obligation quote today

Apply Now

Quick Decision with No Obligation

SME spot, selective and single invoice finance

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

You should consider selective invoice finance if you need support to maintain healthy cash flow or would like to release cash from a large invoice to inject into another business project.

The flexibility spot factoring offers businesses means it’s a facility that can fluidly support your business through periods of financial difficulty. Having an on-demand facility like this set up means 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 payment isn’t due for 90 days. If you receive an expected bill, or other customer payments are delayed, you’ve got a shortfall. This facility can help plug that monetary gap which leaves you free to continue running your business efficiently – pay wages, rent, bills or hire new team members. It’s straightforward financing.

To sum up, here’s why you should consider selective invoice finance:

  • No long-term contracts
  • Easy to dip in and out of funding
  • Perfect for businesses who wish to fund a single debtor
  • Maintain healthy cash flow
Apply Now

Quick Decision with No Obligation

A fast and flexible way to gain control of your cashflow

At SME Invoice Finance, we work hard to provide you with a varied selection of selective, single and spot factoring providers, giving you all the information and tools you need to make an informed business decision.

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 deals out there.

  • Quick setup and easy process
  • Improves your cash flow
  • Straightforward costs
Apply Now

Quick Decision with No Obligation

SME selective invoice finance team

Selective Invoice Finance Frequently Asked Questions

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

As spot factoring, or selective invoice finance, is a flexible ‘on-demand’ service, fees will be considerably higher than if you sold multiple invoices through invoice factoring or invoice discounting.

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.

As with any credit facility, there are pros and cons to weigh up when it comes to selective invoice finance.

Advantages

  • funds are accessible quickly, once set up
  • you don’t need to wait for ages for an invoice to be paid
  • selective invoice finance is flexible; there are no long-term contract
  • perfect for high-value invoices

Disadvantages

  • as spot factoring is flexible, be prepared to face high fees
  • the customer isn’t always able to manage their credit control
  • lack of in-house credit control could damage relationships with customers
  • it can take up to a week to get set up with a provider, so if you need cash immediately, this might not be the best solution

Not at all. Selective Invoice Finance providers work on a pay as you go basis. Some providers do offer a flexible contract option which you pay a small monthly fee for. This can help save money if you require an ongoing need.

Most selective invoice finance providers will offer Bad Debt Protection (BDP) as standard. This protects you and your business against any potential losses caused by a customer not being able to pay. Without this insurance, you’ll be liable to pay if you find yourself with a problematic customer.

Most selective invoice finance providers will not credit check your business. However, they will run credit checks against your potential customer(s) to identify and reduce late or non-payers.

With any financial decision, you should compare providers to make sure you’re getting the best deal possible. Without comparing quotes from multiple sources, how will you know there isn’t a better deal out there?

Before you sign any financial agreements, you should weigh up other financial options available to your business.

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

Apply Now

Quick Decision with No Obligation