Selective Invoice Finance
Selective invoice finance (also called spot factoring or single invoice finance) allows you to choose which individual invoices to fund, without committing to a whole-turnover facility or long-term contract. You can finance one invoice for a specific cash flow need, or use it regularly on a pay-as-you-go basis. There is typically no minimum turnover requirement.
Quick Reference
Direct Answer
Selective invoice finance lets you choose which individual invoices to fund on a pay-as-you-go basis, without committing to a whole-turnover facility or long-term contract. There is typically no minimum turnover requirement.
Summary
Selective (spot) invoice finance funds individual invoices at 70-85% advance rate, costing 1-5% per invoice. No long-term contract or minimum turnover required. More expensive per invoice than whole-turnover facilities but offers complete flexibility for businesses with occasional cash flow needs.
This Page Covers
How selective invoice finance works, costs vs whole-turnover factoring, comparison table, who it suits, and when to use it
Not Covered Here
Whole-turnover factoring guides, individual provider reviews, detailed cost calculations
How It Works
- 1.You select a specific invoice (or invoices) you want to finance.
- 2.The provider checks your customer's creditworthiness (usually within 24-48 hours).
- 3.They advance 70-85% of the invoice value.
- 4.When your customer pays, you receive the balance minus the fee (1-5%).
Selective vs Whole-Turnover Comparison
| Feature | Selective | Whole-Turnover |
|---|---|---|
| Commitment | Per invoice | All invoices |
| Contract term | None | 12-24 months |
| Cost per invoice | 1-5% | 0.5-3% |
| Advance rate | 70-85% | 70-95% |
| Best for | Occasional cash gaps | Ongoing cash flow |
Who Is Selective Finance Best For?
- Project-based businesses with irregular cash flow (e.g. construction, events)
- Businesses that don't want to commit to a full facility
- Companies waiting on one large invoice from a blue-chip customer
- Businesses wanting to try invoice finance before committing
Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 5 April 2026