Fund what you choose

Selective invoice finance: funding on your terms.

Sometimes you do not need a whole-ledger facility. Selective invoice finance, sometimes called spot factoring or single invoice finance, lets you fund particular invoices or customers when it makes commercial sense.

Discuss your options How it works

Initial discussionNo obligationIndependent broker guidance

Selective facility — illustrative

INV-2041 · £18,400Selected

INV-2044 · £9,250Selected

INV-2046 · £22,900Selected

INV-2047 · £3,100Not funded

Invoices selected

Advance

£43k

Illustrative only. Every facility is priced and structured by the provider.

You choose

Invoice by invoice

Commitment

Invoice by invoice, or customer by customer

Suits

Occasional, seasonal or project cash-flow needs

Flexibility

High

Cost per invoice

Often higher than whole-ledger facilities

What it is

What selective actually is

Selective facilities let you decide which invoices to put forward for funding. You might fund a single large invoice from a new contract, a particular customer who always pays slowly, or a run of invoices ahead of a seasonal peak. The rest of your ledger is left untouched.

Because there is usually no whole-turnover commitment, selective facilities can be a useful way to handle occasional pressure without signing up to an ongoing arrangement. The trade-off is that the cost per invoice tends to be higher than under a whole-ledger facility.

In brief

Choose which invoices to fund

Typically no long-term whole-ledger commitment

Useful for occasional or project-based cash-flow gaps

How it works

Selective step by step

Identify the invoice

You choose which invoice or customer account you would like to fund.

Provider assesses it

The provider reviews the invoice and the customer's creditworthiness before agreeing an advance.

Funds released

An agreed proportion of the invoice value is advanced to you.

Settlement

When the customer pays, the provider releases the balance less their fee. There is no obligation to fund the next invoice.

Who it suits

Businesses this tends to fit

Often suits

Businesses with occasional rather than constant cash-flow gaps
Firms winning large one-off contracts
Companies that want to trial invoice finance before committing
Businesses with one or two slow-paying customers

Questions we will ask

What do you sell, and to whom?
How do your customers pay, and how promptly?
How is your sales ledger kept and reconciled?
Do you already have any funding secured on your debtors?

Advantages

Control over what you fund

Only the invoices you choose are financed. There is no requirement to route your whole ledger through the facility.

Lower ongoing commitment

Selective facilities typically avoid the minimum fees and notice periods associated with whole-ledger arrangements.

A way to test the water

Some businesses use selective finance to see how invoice finance fits before moving to a fuller facility.

Things to weigh up

Higher unit cost

Flexibility comes at a price. If you find you are funding most invoices most of the time, a whole-ledger facility is usually more economical.

Customer quality matters more

Providers assess each invoice on its merits, so funding depends heavily on the creditworthiness of the customer in question.

The other forms it takes

The umbrella term

Invoice Finance

A way for businesses that sell on credit terms to access a proportion of the value of unpaid invoices before customers pay.

Invoice finance explained

Funding plus collections

Invoice Factoring

Release cash against unpaid invoices while the provider manages credit control and collects payment from your customers.

How factoring works

Funding, you keep control

Invoice Discounting

Draw funds against your sales ledger while continuing to run your own credit control, often without customers being aware.

How discounting works

Questions

Selective questions, answered straight

Is selective invoice finance the same as spot factoring?

The terms are often used interchangeably. Spot factoring generally refers to funding a single invoice; selective invoice finance can also describe facilities where you fund chosen customers on an ongoing basis. The principle is the same: you choose what to fund.

Will my customer know?

Often, yes. Many selective facilities involve the provider verifying the invoice with your customer and collecting payment directly. Confidential selective facilities exist but are less common.

Is there a minimum invoice value?

Most providers set a minimum invoice size for selective funding, and it varies. We can help you understand where your invoices are likely to fit.