Selective invoice finance

Release funds from specific invoices
to boost cash flow

Selective invoice finance enables you to unlock the value in unpaid invoices. It will free you up to stop chasing late payments and help you to reinvest in growth.

Chasing late invoice payments is one of the most frustrating aspects of running a business, especially if you find that your business’ cash flow is consistently interrupted by the delayed repayment of money owed to you. With selective invoice finance, you are able to use these unpaid invoices as leverage to receive an advance on these payments, as and when your business needs them.

Unlike invoice factoring, selective invoice finance gives you flexibility, boosting your working capital on an invoice-by-invoice basis. You choose the invoices you want to fund and when, enabling you to get back to the day-to-day running of your business.

Benefits of selective invoice finance

  • Freedom: access working capital when you decide you need it
  • Fast: we have a streamlined funding process and we can fund invoices
    same-day, every day
  • Flexible: fund the invoices you choose, as often as you like
  • No commitment: no minimum contract length and no fees
  • Transparent: our self-service platform gives you a live view of all your financed invoices and costs
  • Service: your funding manager provides a dedicated point of contact

“Growth Lending has been able to provide a bigger facility than our previous lender, which has been vital for business continuity and growth”

Rupesh Patel, managing director, Metropharm

Selective 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.

Frequently asked questions

1. What is selective invoice finance?

Selective invoice finance helps businesses to unlock the potential of unpaid invoices, without requiring them 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, because the company selects individual invoices or debtors, rather than requiring its whole sales ledger to be funded. It also gives firms more control over their cash flow, as they can sell individual invoices, or groups of invoices, depending on their 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 flexible invoice discounting, 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?

You must have a UK limited company, 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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