Selective Invoice Finance

Flexibility at Your Fingertips

At Pinks Asset Finance, we understand that not all businesses operate the same way. That’s why Selective Invoice Finance offers a tailored solution, allowing you to choose which invoices to finance, providing flexibility and control over your cash flow.​

What is Selective Invoice Finance?

Selective Invoice Finance, also known as spot factoring, enables businesses to access funds tied up in specific unpaid invoices. Unlike traditional invoice financing, you decide which invoices to finance, offering a bespoke approach to managing your working capital.​

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How Does It Work?

Invoice Selection

Choose the invoices you wish to finance.​

Funding

Receive up to 85% of the invoice value upfront.​

Payment Collection

Your customer pays the invoice directly to the lender.​

Assessment

 The lender evaluates the selected invoices and the creditworthiness of your customers.​

Rebate

Once the invoice is paid, the remaining balance, minus fees, is returned to you.​

For example, if your business has £250,000 in outstanding invoices and an 85% drawdown rate, you can access £212,500 immediately. As invoices are paid and new ones issued, your available funds adjust accordingly.​

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Benefits of Selective Invoice Finance

  • Flexibility: Finance only the invoices you choose, when you need to.​
  • Speed: Quick setup and access to funds, often within a week.​
  • Control: Maintain relationships with your customers, as you manage the invoicing process.​
  • Accessibility: Suitable for early-stage businesses, as the focus is on your customers’ creditworthiness.​ 

Costs Involved

Service Fee

 Charged on your turnover, even if funds aren’t drawn.​

 

Discount Rate

An interest-like charge on the funds you’ve drawn.​

 

Additional Fees

May include setup fees, bank transfer fees, and refactoring fees if an invoice needs reassignment.​

 

Eligibility Criteria

Selective Invoice Finance is suitable for businesses that:​

  • Operate in a B2B environment.​
  • Sell to customers on credit terms.​
  • Have customers with a reliable payment history.​
  • Require flexibility in managing their cash flow.​
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Let's Discuss Your Options

At Pinks Asset Finance, we’re here to help you navigate the nuances of Selective Invoice Finance. Our team is ready to assist you in finding the best solution tailored to your business needs. Reach out to us today, and let’s unlock the potential of your unpaid invoices together.​

With confidential facilities, your customers remain unaware of the financing arrangement. In disclosed facilities, they will be informed.​ 

Most lenders offer bad debt protection (credit insurance), typically costing between 0.2% and 0.6% of turnover, safeguarding you against customer insolvency.​ 

The process is swift, with funds often available within a week of application.​


You’ll need:​ 

  • Full filed accounts.​ 
  • Latest management accounts.​ 
  • 12 months of bank statements.​ 
  • Aged receivables and creditors.​ 
  • An audit trail of transactions with your main customers.​ 
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