Selective invoice finance

Selective invoice finance: fund one invoice, not your whole book

Also called spot factoring. Pick individual invoices to release cash against, with no ongoing commitment on the rest of your ledger.

Pick one invoice

Selective invoice finance lets you choose specific invoices to fund rather than committing an entire sales ledger to a facility. A funding partner advances typically 70 to 85% of the chosen invoice's value within a day or two, and releases the balance (minus fees) once your customer pays. There is no requirement to fund every invoice, or every customer, and no long-term contract binding your whole book.

Who it suits

Businesses that only occasionally need to release cash from one invoice or customer
Companies not ready to commit their entire ledger to an ongoing facility
Businesses testing invoice finance before deciding whether to move to a whole-book product
Seasonal or project-based businesses with irregular invoicing patterns

Worked example

A single £40,000 invoice to a strong customer on 45-day terms, funded selectively at 80%:

Illustrative, based on typical UK market ranges

Invoice value£40,000

Advance rate80%

Advanced within 24–48 hours£32,000

Held back until customer pays£8,000

Arrangement fee (2.5% of invoice value)–£1,000

Discount fee (base + 3%, ~45 days on drawn funds)–£490

Net released after customer pays£6,510

Cost anatomy

Fee	What it covers	Typical range
Arrangement fee	Per-invoice setup and underwriting, charged once per invoice funded	1.5–3.5% of invoice value
Discount fee	Cost of the funds advanced, charged on drawn balance	Base rate + 2.5–4.5%

Fees to watch for

Per-invoice minimum fees that make funding small invoices poor value
Debtor approval fees charged before a new customer's invoices can be funded
CHAPS or same-day payment charges on top of the advance
Facility-review fees if you fund more than the odd invoice per month

Frequently asked questions

Do I have to fund every invoice I raise?

No. That is the entire point of selective invoice finance, sometimes called spot factoring. You choose which individual invoices to fund, invoice by invoice, with no obligation on the rest of your book.

Is selective invoice finance more expensive than whole-ledger factoring?

Usually, yes, per invoice funded. Because there is no ongoing commitment, funding partners typically price selective facilities a little higher than whole-book factoring or discounting. Many businesses accept that trade-off for the flexibility.

Can I use it for a single large invoice?

Yes. This is one of the most common uses, releasing cash tied up in one large invoice from a strong customer without opening an ongoing facility across your whole ledger.

Does selective invoice finance need Companies House verification?

Yes, the same eligibility rule applies as our other products: an active UK limited company, LLP or plc invoicing other businesses on payment terms.

Two minutes, soft checks only, no impact on your credit score.

See how much you could release

Last reviewed: August 2026

See how much you could release.

Two minutes, soft checks only, no impact on your credit score.

See how much you could release