Selective Invoice Finance UK 2026

Market Invoice is an independent UK invoice finance comparison site that ranks the best selective (spot) invoice finance providers across 85 active UK lenders.

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, costs 1-5% of invoice value, and advance rates of 70-85%.

Last updated: 5 May 2026.

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.

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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

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Selective Invoice Finance FAQ

What is selective invoice finance in the UK?

Selective invoice finance (also called spot factoring or single invoice finance) is a UK working-capital product where the provider funds individual invoices on a pay-as-you-go basis instead of your whole sales ledger. You pick which invoices to fund and when. No long-term contract, no minimum turnover, no debenture in many cases. The product suits businesses with irregular cash flow, project-based revenue, or one-off large invoices to creditworthy customers. Costs typically 1-5% of invoice value, advance rate 70-85%.

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

With whole-turnover factoring, all your invoices go through the facility automatically. With selective (or spot) factoring, you choose individual invoices to finance as and when you need cash. Selective is more flexible but typically 0.5-2 percentage points more expensive per invoice. Whole-turnover suits businesses with steady ongoing cash flow needs; selective suits irregular or one-off needs.

How much does selective invoice finance cost in the UK?

Selective invoice finance typically costs 1-5% of invoice value per 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. Discount charge (Bank of England base rate plus 1-3%) is charged on the cash advanced. On a £50,000 invoice with a 60-day payment term and 2.5% service charge, expect about £1,250 service charge plus £125-£175 in discount charge.

Is there a minimum invoice size for selective finance?

Most UK providers require a minimum invoice size of £1,000-£5,000 for selective finance. Specialist fintechs (Triver, Hydr) have lower thresholds. Larger providers (Close Brothers, Bibby) typically focus on invoices of £10,000+ for the economics to work.

Who are the best selective invoice finance providers in the UK?

Kriya (now part of Allica Bank) is the clearest UK specialist for true selective invoice finance with no minimum turnover and day-one acceptance. Triver and Hydr are strong fintech alternatives for micro-businesses. Pulse Finance and Accelerated Payments cover larger one-off invoices. For businesses transitioning from selective to whole-turnover later, Bibby and Ultimate Finance offer both products under one provider relationship.

Can a startup or new business use selective invoice finance?

Yes. Kriya, Triver and Hydr all accept day-one trading. Selective invoice finance is one of the most accessible UK funding products for new businesses because the underwriting is on your customer (a known business) rather than on you. The trade-off: higher cost per invoice and lower advance rate (70-85%) than whole-turnover facilities.

Is selective invoice finance confidential?

Usually no. Most selective invoice finance is disclosed, your customer is told to pay the finance provider directly. Some providers offer confidential selective for established businesses with strong credit control, but this is rare and typically requires £500k+ turnover. If keeping the arrangement private from customers is a priority, confidential whole-turnover discounting is the better fit.

How quickly can I get a single invoice funded?

Most UK selective providers turn around an invoice within 24-48 hours of submission once your facility is approved. Initial facility approval takes 24-72 hours (faster for fintechs Kriya/Triver/Hydr). The credit check is on your customer, not you, so the underwriting is faster than traditional lending. Once approved, subsequent invoices to the same customer typically clear same-day.