Selective invoice finance

Traditional invoice finance is a whole-turnover product: every eligible invoice goes through the facility, with monthly minimum fees and 12-month-plus contracts. Selective invoice finance breaks that model. The business chooses which invoices to fund, when, and pays only for the ones it actually uses. There is no minimum service fee on volumes the business chooses not to put through.

The selective model has grown in the UK since around 2015, driven by fintech providers serving owner-managed businesses with lumpy cash-flow needs — a single large project invoice, a one-off seasonal spike, or a temporary working-capital gap. Headline costs per invoice tend to be higher than a whole-turnover facility, but the absence of minimum fees and lock-in often makes selective cheaper in total for businesses that only need invoice finance occasionally.

Eligibility focuses on the invoice itself rather than the whole business: the lender assesses the debtor's creditworthiness, the contract terms, and whether the work has been completed and accepted. Disputes, contra-accounts and pay-when-paid clauses can disqualify individual invoices that would otherwise be fundable.