Selective invoice financing

Quick facts

Amount

Advance of up to 95% of the value of your invoice (usually a large invoice with a value more than $45,000)

Term

Depends on the product and on your payment terms (e.g. 30, 60, 90 or 120 days)

Cost

A percentage of the invoice value (rate will vary according to the lender, your business profile and the length of the agreement) plus set-up fee – selective invoice finance is usually more expensive on a per invoice basis than whole ledger facilities

Speed

From 24 hours to 2 weeks

Purpose of finance

To finance specific (large) invoices rather than your entire sales ledger (to ease cash flow and to minimise late payment and debt)

Suitable for

A broad range of businesses with B2B invoices (e.g. seasonal businesses, those with occasional large projects and those with just a few debtors) – lenders require a minimum trading history and minimum turnover

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Selective invoice finance allows you to finance specific invoices (or customers). This can be useful if you take large orders from one customer but your other invoices are smaller or irregular. By using selective invoice finance you can get advances for your large invoices, leaving the smaller ones unaffected. There are two main types of selective invoice finance: selective invoice discounting and spot factoring.

If you’re a small business with seasonal fluctuations in cash flow, a factoring facility, which is usually whole revenue (i.e. you have to factor your entire sales ledger), might not be the most cost-efficient way for you to raise working capital. You might instead look at selective invoice finance – where you can choose to finance specific invoices. There are two main types of selective invoice finance: spot factoring and selective invoice discounting.

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Disclaimer: Swoop Finance Pty Ltd (ABN 52 644 513 333) helps Australian firms access business finance, working directly with firms and their trusted advisors. We are a credit broker and do not provide finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop Finance Pty Ltd can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness, we may receive a commission or finder’s fee for effecting such introductions. Swoop Finance Pty Ltd does not provide any kind of advice and in giving you information about providers products, we are not making any suggestion or recommendation to you about a particular product. Offers of finance are subject to a separate assessment process by the provider and subject to their terms and conditions. If you feel you have a complaint, please read our complaints section which is contained within our terms and conditions.