Selective Invoice Finance

Pick and choose which invoices to fund.

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


Companies in the UK
using Invoice Finance


Billion invoices
funded in the UK


Coffees consumed at
Contact Business Finance

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.

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 can my business apply for a Selective Invoice Finance facility?

Speak to Contact Business Finance today and we will put your business in contact with the list suitable lender.

All we need to do is have a 15 minute conversation to find out more about your business and your funding requirements.

What type of businesses use Selective Invoice Finance?

Any business that raises an invoice to another business on credit terms can apply for a selective invoice finance facility. Generally, we find that selective invoice finance facilities are only cost effective if a client only require a facility short term. Or, if they only want to include one client in a facility and raising the cash from this specific clients’ invoices will more than give them enough working capital to trade efficiently. 

Do all lenders offer Selective Invoice Finance facilities?

No, not all lenders off such a facility and require you to include all your sales invoices in a facility. This is why it is important using a broker that can put your business in contact with the most suitable lender from the outset and not waste any time.

Will my client know that I use a Selective Invoice Finance facility?

This depends on whether you choose a disclosed or non-disclosed type of facility. Most selective invoice finance lenders only offer a fully disclosed facility which means your clients will know that you are using a lender. A non-disclosed facility will allow your business to keep the facility confidential to your client.

Can I pick and choose invoices with Selective Invoice Finance?

Yes, that is the whole purpose of choosing this form of invoice finance. It allows a business to pick specific invoices to fund against as opposed to include whole of turnover. It is worth noting that facilities are available on a whole turnover basis, where you can not include certain client invoices. For example, they might pay after 7 days or you might not want the lender to have an interaction with the client.

What is the maximum invoice amount I can factor?

There is no limit for some lenders. This is if the job sign off is strong and will always make the invoice enforceable. This gives selective invoice finance lenders great comfort as it increases the chance of them collecting the debt owed by your client, no matter what scenario.