Selective Invoice finance

Late or slow payment of invoices can make running your business harder than it should be

You are not alone

36% of SMEs wait between 30 and 90 days to get paid*, placing severe strain on cash flow and limiting opportunities for growth.

Invoice finance enables you to unlock the value in unpaid invoices. It will free you from chasing late payments and help you to reinvest in your business’ success.

You select the invoices you want to finance and when, with the flexibility to boost working capital on an invoice-by-invoice basis. We call this selective invoice finance for that reason.

Fund large invoices too, with a $2.5m single debtor limit and facility sizes from $10k to $5m (and up to $10m on request).

Why choose Growth Lending?

  • Fast and simple
    Onboarding takes 1-2 weeks and once set up, we will fund invoices within 48 hours
  • Competitive pricing

    0.75% typical** per month of the invoices financed
  • International currencies
    We can finance invoices raised in Euros, US dollars and sterling
  • Funding for non-UK registered companies
    We can provide invoice financing to companies registered in the UK, United States and Germany (and any other OECD country upon request)

The Growth Lending team has been exceptional throughout the whole process, providing clear guidance on how the facility operates and we are impressed with how quickly Growth Lending turns around funding requests

Chris Richardson – Operations Director, Projekt Rising

Invoice finance explained

Your business needs £20,000 to cover an upcoming business cost, but is owed £30,000 by a repeat client with an outstanding invoice payment. 

Fortunately, you needn’t be left out of pocket – after checking your eligibility, you find that your business qualifies for selective invoice finance with Growth Lending. Using your invoice as proof of incoming future capital, Growth Lending advances your business 85% of the outstanding payment. Once the initial invoice is recovered, the remaining 15% is then paid to you, minus our standard fee. 

With selective invoice finance, your business can focus on the running of your day-to-day operations without worrying that unpaid invoices will leave you out of pocket.

 

Invoice finance for international businesses

For businesses that have subsidiaries registered in the United States, Germany and other OECD countries, Growth Lending’s selective invoice finance enables you to finance all of the subsidiaries’ invoices in a single facility. This reduces the requirement for multiple lenders and keeps the funding process streamlined.

Growth Lending does not need to fund the UK element of your invoice finance requirements. If you already have a lender in place to support your UK business, but need further support for invoice finance in Euro or US dollars, we can operate these as standalone facilities.

This type of finance arrangement works well for a variety of businesses with operations overseas, but can be particularly useful for businesses in the manufacturing and FMCG industries, where there is significant requirement for working capital to support import and export activity.

 

 

*Source: Tide/YouGov survey of 573 UK SMEs Oct 2020
**0.75% for new business in Euros & US dollars; 1.5% for existing and sterling deals

Frequently asked questions

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1. What is selective invoice finance?

Selective invoice finance helps businesses to unlock the potential of unpaid invoices, without them requiring to sell their whole sales ledger. With selective invoice finance, a company can choose which invoices it funds and when, providing a more flexible and sometimes cheaper solution to freeing up working capital.

2. What are the benefits of selective invoice finance?

The flexibility of selective invoice finance means that businesses can often access a greater advance rate than is offered by traditional invoice factoring. You select the individual invoices or debtors to be financed. It also gives you more control over your cash flow, as you can sell individual invoices, or groups of invoices, depending on your working capital requirements.

We do not impose a minimum contract period or minimum income criteria and we do not restrict funding based on concentration, making our product more accessible than many similar options on the market.

3. What are other names for selective invoice finance?

Selective invoice finance is sometimes referred to as spot factoring, spot invoice finance or single invoice factoring, in reference to the flexibility of the facility. In certain markets, these terms are associated with slightly different products, where spot factoring or single invoice factoring refers to the funding of specific individual invoices and selective invoice finance refers to the funding of certain debtors.

Our selective invoice finance product gives businesses the flexibility to fund whatever proportion of invoices they choose, freeing up working capital and keeping them in control of their cash flow.

4. How does selective invoice finance work?

After you have completed our straightforward online onboarding process, we aim to respond with an offer within 24 hours. You then simply select the debtors you want to fund and upload the corresponding invoices to our online portal. We will validate the invoices and advance you up to 85% of the value, and as soon as we receive payment from your debtors, we will rebate the remaining percentage, minus our fee.

5. What is the difference between selective invoice finance and invoice factoring?

Traditionally, invoice factoring requires a business to sell its whole sales ledger to a third-party factoring company. This firm takes on the debt in its entirety, freeing up working capital for the business. However, this can be a more expensive way of funding invoices and it may not suit firms with seasonal cash fluctuations that do not need the funding year-round.

Selective invoice finance gives businesses the flexibility to fund individual invoices. Companies can select the invoices they want to be funded and decide when the funds are released, putting them in control of their cash flow.

6. If my business receives funding via Growth Lending's invoice finance, who has the responsibility of chasing the invoice payment?

With selective invoice finance, firms retain complete control of their cash flow and are therefore responsible for recovering outstanding payments themselves.

An additional benefit of this feature is that the service provided by Growth Lending can be kept confidential, so the business using the selective invoice finance facility does not need to inform its own clients.

7. What are the eligibility criteria for selective invoice finance?

Your business must be registered in the UK, US or Germany (or other OECD countries on request), with B2B invoices of more than £3,000 and payment terms between 0 and 120 days.

Apply now

Growth Lending funds a wide range of growing B2B firms.
If that’s you, let’s check if you’re eligible

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