Selective invoice finance enables you to sell individual unpaid invoices at a discount to release funds as working capital for your business. Rather than waiting to be paid up to ninety days for payment of products and services you have delivered, a percentage of the funds can be made available immediately so you can manage your cash flow and get on with running your business effectively.
Selective invoice finance, also known as spot factoring or single invoice factoring, offers businesses the opportunity to release the funds tied up in individual unpaid invoices. Unlike invoice factoring and invoice discounting, the business does not have to sell its entire sales ledger; you can simply access funds as and when your business requires an injection of cash, by using the facility on an invoice-to-invoice basis.
Choosing to factor an individual invoice does not require you to relinquish control of your customer relationships. You remain in control of collecting outstanding payments so the factoring arrangement remains completely confidential between you and your alternative lending provider.
Selective invoice financing is ideally suited to businesses that experience seasonal fluctuations. It offers a short-term alternative finance arrangement that assists with the management of cashflow. As well as supporting your daily business needs, such as meeting payroll and paying bills, it can be also used to invest in new company assets or employee training programmes.
To find out for free if you qualify for selective invoice finance, please apply online now for a no obligation quotation.
Most businesses using selective invoice financing will choose to submit a large value invoice – typically upwards of £50,000 – to a factoring company. Having agreed rates and charges, up to 100% of the value of the invoice may be released up front. The remaining balance is transferred to the business minus service fees once your customer has paid the outstanding amount.
To begin the process, you simply select the invoice you wish to factor. If your request for capital is approved, you will agree a fee for the factoring service. You will then receive an advance of up to 100% of the value of the invoice, typically within 24 hours. When your customer pays the invoice, you will receive the balance minus the lender’s agreed service fee.
Selective invoice finance helps you manage your cashflow, pay bills, meet payroll and invest in stock and equipment for your business. You choose the individual invoice you wish to factor, receive the funds you need quickly and retain control of your customer relationships and collection arrangements. The great benefit with selective invoice finance is that you can access working capital finance to suit the demands of your business.
With selective invoice finance, funds are made available incredibly quickly; the cash advance could be in your account within twenty-four hours. With no long-term contracts and the flexibility to select the invoices you wish to factor, you can plan ahead when running and growing your business. As you retain responsibility for credit control, selective invoice finance remains a completely confidential arrangement.
If you operate a UK-registered PLC, LLP or limited company and invoice business customers for products and services, you could be eligible for selective invoice finance. You will operate a business with a minimum annual turnover of £50,000. It is worth noting that some alternative funding providers will only accept the invoice if your customer has a good credit score.
Rather than factoring individual invoices, you may wish to sell your entire sales ledger to a factoring company. If this is the case, invoice factoring could offer the tailored service you require. If you are not eligible for selective invoice finance, we offer a vast range of alternative finance and can help find the right solution for your business.