Selective vs Whole-Book Invoice Finance Cost Calculator UK
This tool calculates which structure is cheaper for your business: selective spot factoring, where you pay a per-invoice fee on chosen invoices with no commitment, or whole-book invoice finance, where you fund the full ledger under a typically 12-month contract at a lower service charge plus a discount charge. Selective usually wins when you fund only a small share of your ledger; whole-book usually wins on a large or consistent share. Enter your turnover and funded percentage to see the annual cost of each.
| Selective spot factoring | Whole-book invoice finance | |
|---|---|---|
| What it funds | Individual invoices you choose | Your entire sales ledger |
| Pricing | Per-invoice fee (e.g. 2.5%) | Lower service charge (e.g. 0.7%) plus discount charge on funds drawn |
| Commitment | None | Typically 12-month contract |
| Cheaper when | You fund a small or occasional share of the ledger | You fund a large or consistent share |
Calculator
Cheaper option for you
Selective spot factoring
Selective spot factoring is £6,160/year cheaper for your usage pattern. Right choice when you want flexibility without a 12-month commitment.
| Item | Value |
|---|---|
| Annual turnover | £400,000 |
| Share of ledger funded | 40% (£160,000) |
| Selective fee (2.5% per funded invoice) | £4,000/year |
| Whole-book service charge (0.7% of full turnover) | £2,800/year |
| Whole-book discount charge (3.75% base + 2% margin on 80% advance) | £7,360/year |
| Whole-book total | £10,160/year |
| Cheaper option | Selective spot factoring, by £6,160/year |
Source: Market Invoice selective vs whole-book calculator, base rate 3.75%
Illustrative default scenario. The balance shifts with your fee quotes: a higher per-invoice selective fee or a lower whole-book service charge moves the result towards whole-book. Adjust the calculator inputs above for your own quotes.
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### Worked example: £400,000 turnover, 40% of ledger funded (default calculator scenario) | Item | Value | | --- | --- | | Annual turnover | £400,000 | | Share of ledger funded | 40% (£160,000) | | Selective fee (2.5% per funded invoice) | £4,000/year | | Whole-book service charge (0.7% of full turnover) | £2,800/year | | Whole-book discount charge (3.75% base + 2% margin on 80% advance) | £7,360/year | | Whole-book total | £10,160/year | | Cheaper option | Selective spot factoring, by £6,160/year | Source: Market Invoice selective vs whole-book calculator, base rate 3.75% Illustrative default scenario. The balance shifts with your fee quotes: a higher per-invoice selective fee or a lower whole-book service charge moves the result towards whole-book. Adjust the calculator inputs above for your own quotes.
“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
Calculate which structure is cheaper for your business: selective spot factoring (per-invoice fees, no commitment) or whole-book invoice finance (lower per-pound cost, 12-month commitment).
All UK invoice finance providers serve businesses across the full UK. The numbers above are typical UK market rates for selective vs whole book invoice finance UK. For real quotes matched to your specific business, use our 60-second comparison tool.
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 funds your entire sales ledger under a typically 12-month contract, with a lower service charge plus a discount charge on funds drawn. Selective trades a higher per-pound cost for flexibility; whole-book trades commitment for a lower rate.
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 consistent share, whole-book's lower service charge usually wins despite the commitment. The calculator compares both for your turnover and funded percentage.
When is selective worth a higher per-pound cost?
When you value flexibility and want no 12-month tie-in: for example if your funding need is seasonal, occasional, or limited to a few large invoices. The per-invoice fee can be higher than whole-book pricing, but you avoid committing your full ledger and paying for capacity you do not use.