Fund Only the Invoices You Choose
Selective invoice finance lets you release cash from individual invoices — no whole-ledger commitment, no long-term contracts, no minimum volumes. Up to 90% advanced within 24 hours.
80-90%
Advance Rate
£5k+
Minimum Invoice
24hrs
Funds Released
0
Minimum Commitment
Why Selective
Invoice Finance on Your Terms
The flexibility of invoice finance without the commitment of whole-ledger factoring
Total Flexibility
Choose which invoices to fund and when. No minimum number per month, no ongoing commitment. Use it when you need it.
Fast Access
Once set up, funds can be in your account within 24 hours of submitting an invoice. Set up takes 3-5 days.
Confidential Options
Confidential selective invoice discounting keeps the arrangement private. Your customers pay you as normal.
Invoice by Invoice
No ledger assignment, no minimum volumes. Perfect for large one-off invoices or seasonal cash flow gaps.
Up to 90% Advance
Most providers advance 80-90% of the invoice face value, with the balance (minus fees) paid on customer settlement.
No Long-Term Contract
Unlike traditional factoring, there's typically no minimum term. Stop using the facility at any point without penalty.
Comparison
Selective vs Traditional Factoring
| Selective Invoice Finance | Traditional Factoring | |
|---|---|---|
| Commitment | Choose invoices individually — no commitment | Whole sales ledger assigned |
| Contract length | No fixed term — use when needed | Typically 12-24 month contract |
| Cost | Pay per invoice — no ongoing fees | Monthly service fees + discount rate |
| Credit control | You retain full credit control | Factor manages collections |
| Customers notified | Disclosed or confidential options | Customers usually notified |
| Best for | Occasional use, seasonal peaks, one-off needs | Businesses wanting outsourced credit control |
FAQs
Selective Invoice Finance Questions
Selective invoice finance (also called spot factoring or single invoice finance) allows you to choose which invoices to sell to a finance provider. Unlike traditional invoice factoring, you don't have to commit your whole sales ledger — you select individual invoices when you need cash, pay a fee for the service, and when your customer pays, the arrangement ends. It gives you the benefits of invoice finance without a long-term contract or whole-ledger obligation.
Traditional factoring typically involves assigning your entire sales ledger to a factoring company under a 12-24 month contract. The factor manages all your credit control and collects from all your customers. Selective invoice finance lets you pick individual invoices — perhaps from one large customer or for a specific cash flow need — without disrupting your other customer relationships or committing to a whole-ledger arrangement. You pay only for what you use.
Most selective invoice finance providers advance between 80% and 90% of the invoice face value. The remaining 10-20% (minus fees) is released when your customer pays. For example, on a £50,000 invoice, you might receive £45,000 within 24 hours, with the remainder paid when your customer settles. The advance rate depends on your credit profile and the creditworthiness of the debtor (your customer).
Eligible invoices are typically those raised to creditworthy UK or international business customers (not consumers) for goods delivered or services completed. The invoice must be undisputed, not subject to retention, and the debtor must be creditworthy. Invoices with payment terms of up to 120 days are usually accepted. Most providers have minimum invoice values (typically £5,000–£10,000 per invoice).
It depends on the provider and your requirements. Some selective invoice finance is disclosed — meaning your customer is notified that a third party has purchased the invoice and payment should be made to them. Confidential selective invoice discounting keeps the arrangement private; your customer pays you as normal and you settle with the finance provider. Most providers offer both options. Confidential facilities are usually reserved for businesses with stronger credit profiles.
The cost of selective invoice finance is typically expressed as a discount fee — usually between 1.5% and 4% of the invoice value per 30 days, depending on the invoice size, debtor creditworthiness, and your business profile. There may also be a transaction or administration fee per invoice. While this is higher than whole-ledger factoring rates, you only pay when you use the facility, making it cost-effective for occasional cash flow needs.
Once your facility is set up (typically 3-5 working days for existing businesses), you can usually access funds within 24 hours of submitting an invoice. Initial setup involves credit checking your customer, verifying the invoice, and completing identity checks. Subsequent invoices from the same customer are often funded the same day.
Selective invoice finance is available for invoices from around £5,000 upwards, with no firm upper limit for very large invoices — some providers fund individual invoices of £1m or more. The total facility value depends on the invoices you select and the creditworthiness of your debtors. Because it's invoice-by-invoice, there's no fixed facility limit to worry about.
Other Invoice Finance Options
Have an Invoice to Fund?
Tell us about your invoice and business — we'll match you with the right selective invoice finance provider and get you funded fast.