Pick and choose which invoices to fund.

  • Receive up to 90% of the invoice value
  • Fast & flexible funding
  • No length contracts

What is Selective Invoice Finance?

Selective invoice finance allows a business to pick and choose what invoices to receive funding against. This form of invoice finance facility is also known as spot factoring.

What is Spot Factoring?

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

How does a Selective Invoice Finance facility work?

Selective invoice finance lenders are generally more technology based and you have a portal to upload invoices onto. The process is simple:

  1. You upload a select few invoices onto a portal
  2. The lender verifies the invoice with your client
  3. Once verified, they can release up to 90% of the gross invoice value depending on what industry you are in
  4. Your client pays the invoice, and your business receives the remaining 10% minus the lenders charges


Invoice Value £1,000 £5,000 £10,000
Cash from the lender on day one (90%) £900 £4,500 £9,000
Cash from the lender once client pays (10% minus fees) £70 £350 £700
Lenders fee (based on 3%) £30 £150 £300

Is Selective Invoice Finance a good idea for my business?

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.

How much does Selective Invoice Finance cost?

Selective invoice finance rates are generally higher in terms of fee structure than the traditional forms of invoice finance. However, businesses can save money with a selective invoice finance facility because they are not being charged fees on all turnover. Fees on selective invoice finance facilities range from 1.5 to 5%.

What are the advantages of 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.

What are the disadvantages of Selective Invoice Finance?

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.

Want to know more? Check out Contact Business Finance for more information!