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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. 1.You select a specific invoice (or invoices) you want to finance.
  2. 2.The provider checks your customer's creditworthiness (usually within 24-48 hours).
  3. 3.They advance 70-85% of the invoice value.
  4. 4.When your customer pays, you receive the balance minus the fee (1-5%).

Selective vs Whole-Turnover Comparison

FeatureSelectiveWhole-Turnover
CommitmentPer invoiceAll invoices
Contract termNone12-24 months
Cost per invoice1-5%0.5-3%
Advance rate70-85%70-95%
Best forOccasional cash gapsOngoing cash flow

Who Is Selective Finance Best For?

OM

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

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Selective Invoice Finance FAQ

What is the difference between selective and whole-turnover factoring?

With whole-turnover factoring, all your invoices go through the facility. With selective (or spot) factoring, you choose individual invoices to finance as and when you need cash. Selective is more flexible but typically more expensive per invoice.

How much does selective invoice finance cost?

Selective invoice finance typically costs 1-5% of the invoice value for a single invoice, compared to 0.5-3% for whole-turnover facilities. The higher cost reflects the administrative overhead of processing individual invoices without the economies of scale.

Is there a minimum invoice size for selective finance?

Most providers require a minimum invoice size of £1,000-£5,000 for selective finance. Some providers have no minimum, while others focus on larger invoices of £10,000+.