Selective Invoice Finance 2018-06-15T12:14:30+00:00

Selective Invoice Finance

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What is Selective Invoice Discounting?

Selective invoice discounting and spot factoring provide your business with fast and straightforward finance, without having to fund the entire debtor book. Invoice finance is traditionally used to fund all or at least some invoices on an ongoing basis.

We offer both selective invoice finance and spot factoring facilities from across the whole market. Read on to learn more or contact us today for a free personalised quote.

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How Does it Work?

Selective invoice discounting is when a client chooses not only which customers they wish to factor in but also which of those customers’ invoices to factor, and when. As, unlike traditional invoice finance facilities, the agreement does not cover all of the invoices meaning clients retain more control.

This kind of facility, once agreed, can usually be used over and over again, as needed. Where there are seasonal fluctuations or growing pains causing occasional cash flow issues, this can be very useful to a business.

Selective invoice discounting providers will usually allow you to release up to 85% of the value of your invoice. For strong debts, the percentage may increase up to 90% if needed.

Spot Factoring

Spot factoring or single invoice factoring is a term used to describe a facility whereby a one-off invoice is factored with no view to using the facility again. Because single invoice finance is usually just one transaction, the costs can be higher than with other forms of invoice finance.

Spot factoring has no ‘tie-in’ meaning that when the transaction is complete, there is no more commitment needed from you.

There are several types of invoice finance facilities with varying levels of flexibility. Our expert advisors will happily talk through your circumstances and find the right invoice finance solution for you and your business.

Selective Invoice Finance Process

  1. The invoice that you need to fund is agreed with the lender.
  2. Once approved, they will require a copy, along with any supporting documents.
  3. The cash will be advanced at the agreed rate, minus the agreed charge for funds.
  4. Once the invoice is settled, you will receive the balance due to you.

Who Is Selective Invoice Discounting For?

Selective invoice discounting is an excellent solution for businesses with unpredictable cash flow. Where growing pains cause issues or large occasional orders stretch your finances, single invoice finance can step in quickly to fund the gap.

Most businesses do not see steady and predictable growth, there will always be busy or quiet periods. When one of those times strikes, a solution can be put in place to take the pressure off your cash flow and allow you to focus on your business.

The Benefits & Drawbacks Of Selective Invoice Finance

We have listed the main pros and cons of selective invoice finance below to help you make the right decision – our team of invoice finance specialists are available to answer any further queries on 01922 620008.

Benefits

  • Funds are usually available very quickly, and can usually be drawn within 24 hours of your application.
  • You choose which invoices you fund. If you don’t need to fund a particular invoice, then you pay nothing.
  • You are not tied into a long contract and can use the service only as required.
  • The charges are easy to understand. A ‘cost of credit’ is agreed upfront and only a single fee charged.
  • Your facility is flexible and can sit in the background as you need it.

Drawbacks

  • Selective invoice discounting lenders will not usually fund an entire debtor, which can cause problems should a sudden need for lots of capital arise.
  • The cost is usually higher than traditional invoice finance facilities for each pound borrowed, although this is usually offset by the selective nature of the facility.

Working With ABC Finance

We work with selective invoice discounting providers across the market and can help you find the most suitable solution for you. We are totally independent, meaning we don’t have any bias toward a lender. We focus only on finding the best deal for you.

At ABC Finance Ltd, we know the invoice finance market extremely well and have relationships with all the top lenders. By working with us, you can access the whole market through one simple, quick enquiry. We manage the whole process for you, so you can leave the whole thing to us while we negotiate the most suitable terms for you.

By talking to one of our expert advisors, we will be able to provide you with details of the best options for your business. Enquire online now or call us on 01922 620008 to get a free personalised spot factoring quote.

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