Invoice discounting, or invoice finance is a short-term finance solution for releasing cash locked in invoices, thereby stimulating cashflow. Single Invoice Finance is distinctive in offering an invoice discounting facility for selective or single invoices for a single fee without any ongoing commitment to continue using an ongoing factoring service. Selective invoice discounting is currently unique in the industry and offers a solution which all companies, from start-ups to multinationals, can tailor to suit their own business finance needs.
What is selective invoice finance
Selective invoice finance, also known as spot factoring or selective invoice discounting, is an innovative cash flow business finance product which enables businesses to access working capital from debtor invoices on an invoice-by-invoice basis without entering into a long-term contract. Because it offers businesses quick and straightforward access to funding on a short-term basis and has flexible terms, selective invoice finance is different from traditional factoring. These reasons are behind the emergence of this product as a leading form of alternative funding for micro, small and medium-sized enterprises.
Selective invoice finance enables businesses to release funds from single invoices. The facility can be used time and time again whenever the need arises to raise working capital.
No long-term commitment
There’s no need to lock-in the whole sales ledger to an annual agreement. Once an invoice is settled, there are no further obligations from the client to the funder, but the facility remains available on an invoice-by-invoice basis.
Transparent charging
Isn’t it better to understand the cost of finance up-front? One invoice, one fee and no monthly minimum charges. This encourages businesses to draw only the funds required, as they only pay for funds in use and no more. This type of invoice finance does not attract any monthly minimum payments or enduring charges.
Quick access to capital
Selective invoice finance is a simple process that allows businesses immediate access to funds when they’re needed most.
Credit management and customer relationships
Selective invoice finance recognises the importance of the relationship between a client and their customers by enabling a client to use their own credit management processes. Where in-house credit management procedures are not robust, the funder can supply supplementary services.
Customer serviceSelective invoice finance is a business finance product with a strong focus on customer service. It is built around clients returning to use the facility, a business model that can only succeed if value for money is continually proven.