Whereas with the traditional types of invoice finance you will borrow against all or the majority of your sales ledger, this product allows you to only commit certain customers to the facility.
As an example, if you had ten customers, but only two who paid on slower terms, you could simply commit the two slower paying customers to the facility, and exclude the eight who pay well.
Compared to the more traditional products, Selective Invoice Finance is more flexible and is becoming more popular as it is very easy to use. It can be slightly more expensive than Factoring and Invoice Discounting, as you will be putting less through the facility itself.
Instead of borrowing against all customers on your sales ledger, you would only choose those you want to fund and commit them to the facility. Once you commit a customer to the facility, you must give all invoices for that customer to the selective invoice finance lender. You will receive two payments from the lender. The first payment will be the initial bulk payment against the total invoice value, known as the pre-payment percentage. The second payment is the remainder of the invoice, minus the agreed upon fee. This is the residual balance. Your customer will pay the lender back directly.
Submit invoice(s)
Initially, you will submit the invoices you would like to fund to the selective invoice finance lender.
Invoice Verification
Once the amount of funding available per customer is agreed, the lender will do a verification with your customers.
Initial Advance to you
Once the invoice is verified, your selective invoice finance provider will advance the funds to you.
Credit Control
Your selective invoice finance provider chases your customer for payment of the invoices which they have advanced funds against.
Balance Paid to you
Once payment has been made by your customer to the lender, you will receive the remaining balance of the invoice, minus the agreed upon fee.
To see your Selective Invoice Finance options, use our FREE quote form.
You do not have to commit all of your customers to the facility, meaning you can exclude good payers.
Allows you to draw funds from slow paying or large customers, bridging the gap between completing work and getting paid for it.
It is easy to add new customers to the facility, meaning if you bring on a new customer and get a limit approved, you can borrow against them quickly.
Ideal for both immediate cash injections, as well as a steady stream of cash going forward.
We came to “Shire” at a time when we had lots of invoices outstanding from local authorities, who are notoriously slow and difficult to get money out of. But now we know exactly when we’ll get payment and this has been great for planning and cash flow purposes. Dealing with “Shire” is easy and very convenient and they have considerably made our business lives a lot smoother.
Lucinda Geoghegan
Here at Superior Shine Cleaning Services Ltd I was put in touch with Shire Invoice Finance to assist my company with invoice financing solutions and would like to highly recommend them. Their industry knowledge was excellent, and we experienced a professional and friendly service not only to us but to our clients. For anyone looking for invoice financing options I would recommend Shire Invoice Finance to anyone as a first point of call they have helped us with our cashflow to keep our business growing
Scott Ronaldson, Superior Shine Cleaning Services Ltd
Just wanted to say thank you for all the financial funding over the last 5 years. When you first came to my business premises to introduce yourself and Shire Invoice Finance back in 2015 I was a little unsure if this would work for us but being a new start up business venture for me I quickly realised that we would need regular cash flow. Thank you for everything you have done and I really do look forward to continued business with Shire Invoice Finance
Stephen Thompson, Thompson Haulage Ltd
I found Ben and the team at Shire Invoice Finance helpful very helpful. They understood what my business needed and within a couple of days everything was in place and ready to use.
Susann Akers, Total Recall Business Services Ltd
Thank you so much for your hard work the past week. I can’t believe how fast and smooth this process has been! I can’t thank you all enough.
Adam, Shellard Travel
Takes less than 3 minutes
Takes less than 3 minutes.
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