Selective Invoice Finance

Selective invoice finance allows a business to request funding against chosen eligible invoices rather than automatically financing its complete sales ledger.

The terms are often used for similar invoice-by-invoice products, although provider structures, recourse and collection arrangements vary.

The business submits a chosen invoice for assessment. If approved, the provider advances an agreed amount and is repaid when the customer settles, subject to fees and terms.

No. The provider assesses the customer, invoice, contract, evidence of delivery, payment terms, disputes and assignability before approval.

The advance depends on the provider, customer, invoice and risk assessment. Fees or reserves reduce the net amount received.

Timing depends on onboarding, verification, documentation, customer checks and the completeness of information. No completion time is guaranteed.

Some selective facilities are disclosed and require customer acknowledgement or payment instructions. Confidential structures may be available in limited circumstances.

Collection arrangements vary. The business may continue collections, or the provider may control or monitor payment.

The provider deducts the funded balance and agreed charges, then releases any remaining amount subject to the facility terms.

Project-led businesses, consultants, contractors, wholesalers, manufacturers and service companies may use it for occasional large invoices.

Potentially. Providers may focus on the customer and invoice as well as management experience, contracts and business information.

Some providers consider export invoices, subject to country, currency, customer quality, legal terms and credit protection.

Potentially, subject to contract terms, assignability, evidence of completed supply and provider criteria.

Disputed or conditional invoices are generally difficult to fund because the payment obligation is uncertain.

Potentially, but the provider must be satisfied that the milestone is completed, approved and unconditionally payable.

Potentially, but applications for payment, certification, retentions, set-off and contractual terms require specialist assessment.

Potentially, although agencies with regular payroll needs may find a whole-ledger recruitment finance facility more suitable.

It can have a different effective cost because it is used transaction by transaction. Compare likely usage, fees and operational requirements.

Factoring usually funds a broader ledger and includes provider-led credit control. Selective finance funds chosen invoices under a transaction-specific structure.

Invoice discounting normally provides ongoing funding across an eligible ledger while the business retains collections. Selective funding is used for chosen invoices.

Recourse means the business remains responsible if the customer does not pay within the agreed period or the invoice becomes ineligible.

Not automatically. Any credit protection is subject to separate limits, exclusions and compliance conditions.

Fees may include a transaction or discount charge, verification costs, legal or setup fees and other charges specified by the provider.

Selective invoice finance is primarily based on the receivable, but guarantees, debentures or other security may be required.

That is the core appeal of selective funding, but each request remains subject to provider approval and product terms.

Potentially, subject to existing lender security, assignment restrictions and consent.

Yes, subject to underwriting. A whole-ledger facility may become more economical or operationally suitable as regular usage grows.

Common requirements include the invoice, contract or purchase order, evidence of delivery, customer details, bank statements, accounts and company information.

Yes. Call Shadowfax Funding Solutions on 0208 154 6052 to discuss the invoice, customer, payment date and funding requirement.

A broker can compare provider appetite, disclosure, fees, recourse, eligibility and whether a whole-ledger alternative may be more suitable.