What is it
This solution goes by a few different names including: Selective Invoice Discounting, Single Invoice Finance, Spot Factoring. It’s straightforward factoring but with Working Capital Partners you have full control over which individual invoices you factor. Essentially invoices are sold to release working capital. Selective invoice finance is unique in that it’s the only invoice solution that allows you to choose invoices in order to improve cash flow and use the funds for what you want.
How it works
You have business customers that you invoice on agreed payment terms which could be from 30 to 90 days, but you need the cash now in order to keep your business running.
Some factoring companies lock you into a long-term contract for all of your invoices with a minimum monthly utilisation. Then they charge fees for everything from admin to late payment penalties. We have simplified it.
With selective invoice finance, if we can verify the invoice and you have a creditworthy customer, we can usually advance up to 85% of the invoice face value the same day.
You decide how much you need.
Once the goods are delivered, you raise an invoice assigned to us.
Once your client has paid us, we will send you the balance less our fee.
With selective invoice finance, the fee is shown as a percentage of the invoice total, but it’s calculated using a couple of factors:
- the actual amount advanced,
- the number of days from advance until your customer settles.
Get your invoices out promptly, but only draw cash when you need it. This helps keep your fees down and gives you the option to top up as needed.