Selective Invoice Finance
Selective Invoice Finance is a simple and flexible funding solution that enables your business to raise short term funds by releasing cash in your outstanding invoices, on an invoice-by-invoice basis.
The need to raise short term funds is many and varied, whether it’s to increase stock or staffing levels for a new customer order or to pay the VAT bill on time. Whatever the need Selective Invoice Finance can provide immediate access to capital when it is needed most, without the burden of a long-term contract.
Benefits of Selective Invoice Finance
Quick access to cash – Up to 90% of the invoice value can be advanced within 24 hours, meaning you have the funds to use in your business immediately.
Flexibility – you chose which invoice(s) you would like funding provided against. The service is tailored to the specific cash flow requirements of your business and can be used over and over again should you need.
No long term/ongoing contracts – once an invoice has settled there is no ongoing commitment, however the facility remains available to you should you choose.
Simple and transparent pricing – one single fee is charged on the amount of money advanced against each invoice, making it simple to budget for and helping you stay in control of your outgoings.
The procedure is as follow:
- The invoice is raised and sent to your customer as normal. Details are sent to the Funder.
- The Funder will confirm with the customer that the goods or services have been delivered.
- Up to 90% of the value of the invoice will be paid to you.
- You will be responsible for collecting the payment for the invoice.
- Once settled, the payment is passed to the Funder.
- The Funder retains the original advance and their fee, and the balance is returned to you.
Here are some case studies of recent deals:
Business 1
A cladding and tiling contractor came to us with a turnover of £700k looking to fund selected invoices. They had 4 main debtors, but one in particular was a large monthly contract, and took over 60 days to pay. This was resulting in a cashflow problem.
They were introduced to a Selective Invoice Finance provider who financed the invoices by taking the security against the quality of the debtor with an insured limit.
Business 2
A sports clothing company was in the process of starting a facility with a bank funder. There were delays in obtaining the relevant credit insured limits against their export debtors but in the meantime they had a temporary cashflow problem.
We introduced a Selective Invoice Financier who funded the interim invoices until the Invoice Discounting facility was ready to run.
Business 3
A scaffolding firm with some good debtors who paid regularly called us. They didn’t need an on-going factoring facility, but just occasionally they needed help to pay their VAT and PAYE. They only use the facility once or twice a year, but it gives them the flexibility and security of being able to raise funds quickly if needed.
