Selective invoice finance

Selective invoice finance allows a business to fund individual invoices, or a chosen subset of its debtor ledger, rather than committing its whole book to a facility as factoring or invoice discounting typically require. It suits a business with a single large invoice creating a cash flow gap, or one that wants occasional access to invoice funding without a standing facility over its entire ledger, and generally comes with more flexibility to use it only when needed rather than a continuous drawdown arrangement. Because the financier is assessing individual invoices rather than a whole book, pricing is typically set per transaction and can vary more than a standing facility's terms, reflecting each debtor's individual credit strength. Lenders assess selective invoice finance primarily on the strength and payment history of the specific debtor named on the invoice being funded, rather than the business's broader financial position.

Related

Invoice finance · Factoring · Invoice discounting