Selective vs Whole-Book Invoice Finance Cost Calculator UK
This calculator compares the annual cost of selective spot factoring and whole-book invoice finance. Selective charges a fee on only the invoices you choose to fund, with no ongoing commitment. Whole-book usually charges a service charge on your whole turnover, plus a discount charge on the money you draw for as long as invoices are unpaid, under a contract with a minimum term. With the example inputs, selective tends to cost less when you fund a small share of your ledger and whole-book when you fund most of it. The rates filled in below are example inputs, not market rates: most lenders do not publish theirs, so replace them with the quotes you are given.
| Selective spot factoring | Whole-book invoice finance | |
|---|---|---|
| What it funds | Individual invoices you choose | Your entire sales ledger |
| Pricing | A fee on each invoice you fund | A service charge on turnover plus a discount charge on money drawn |
| Commitment | None | Minimum contract term (ask each lender) |
| Cheaper when | You fund a small or occasional share of the ledger | You fund a large or consistent share |
Calculator
The rates filled in are example inputs, not market rates; replace them with your quotes. Base rate 3.75% from the Bank of England. Selective is costed as a flat fee per invoice; if a selective quote also includes a discount charge, add it to the fee.
Cheaper option for you
Selective spot factoring
With these inputs the difference is £10 a year.
| Item | Value |
|---|---|
| Annual turnover | £400,000 |
| Share of ledger funded | 40% (£160,000) |
| Selective fee (2.5% per funded invoice, example input) | £4,000 a year |
| Whole-book service charge (0.7% of full turnover, example input) | £2,800 a year |
| Whole-book discount charge (3.75% base + 2% example margin, on a 80% advance, for 60 days) | £1,210 a year |
| Whole-book total | £4,010 a year |
| Cheaper with these inputs | Selective spot factoring, by £10 a year |
Source: Market Invoice calculator; base rate from the Bank of England
Example inputs, not market rates. A higher selective fee, a lower whole-book service charge or a larger funded share moves the result towards whole-book. Use your own quotes in the calculator above.
View as plain-text Markdown
### Worked example with the default inputs: £400,000 turnover, 40% of ledger funded, customers paying in 60 days | Item | Value | | --- | --- | | Annual turnover | £400,000 | | Share of ledger funded | 40% (£160,000) | | Selective fee (2.5% per funded invoice, example input) | £4,000 a year | | Whole-book service charge (0.7% of full turnover, example input) | £2,800 a year | | Whole-book discount charge (3.75% base + 2% example margin, on a 80% advance, for 60 days) | £1,210 a year | | Whole-book total | £4,010 a year | | Cheaper with these inputs | Selective spot factoring, by £10 a year | Source: Market Invoice calculator; base rate from the Bank of England Example inputs, not market rates. A higher selective fee, a lower whole-book service charge or a larger funded share moves the result towards whole-book. Use your own quotes in the calculator above.
“Which option is cheaper turns on how much of your ledger you actually fund and how often. The worked example assumes one usage pattern; a different funded share or season can flip the answer, so price both against your real numbers.”
What this tool tells you
The calculator works out selective as your fee times the invoices you fund, and whole-book as the service charge on your whole turnover plus the discount charge on the money drawn for the days invoices are unpaid. It leaves out other fees such as set-up, audit, payment or minimum monthly fees, so add those from your quotes.
The figures above are an illustrative default scenario, not a quote: the rates you are offered depend on your turnover, sector and debtor quality. For real quotes matched to your specific business, use our 60-second comparison tool.
Already on selective and pricing a particular set of invoices? The selective batch cost model works out the cash and cost for a batch, including invoices the funder rejects or caps.
Selective vs whole-book invoice finance FAQ
What is the difference between selective and whole-book invoice finance?
Selective (spot) factoring funds individual invoices you choose, charging a per-invoice fee with no long-term commitment. Whole-book invoice finance covers your whole sales ledger under a contract with a minimum term, usually with a service charge on your turnover plus a discount charge on the money you draw. Selective gives you flexibility; whole-book asks for commitment.
Which is cheaper, selective or whole-book?
It depends on how much of your ledger you fund. If you only fund a small share of invoices occasionally, selective is often cheaper because you only pay on what you use. If you fund a large or steady share, whole-book can work out cheaper, because its charges are spread over more funded invoices. The calculator compares both using your own quotes.
When is selective worth a higher cost per invoice?
When you value flexibility and do not want a minimum contract term: for example if your funding need is seasonal, occasional, or limited to a few large invoices. You avoid committing your whole ledger and paying a service charge on turnover you do not fund.