WHAT IS SELECTIVE INVOICE

DISCOUNTING?

1) Selective invoice discounting in a nutshell

Selective invoice discounting, like spot factoring, is where
individual invoices (or receivables ) are sold to a third party at a
discount to raise working capital .
Factoring facilities are traditionally whole turnover, meaning the
company must factor their entire sales ledger. This can become
expensive and not reflect the most cost effective solution for
companies to raise their working capital.
Many small businesses have seasonal fluctuations in cash flow
and so selective invoice finance would be a much cheaper
solution.

2) Also known as...

Spot factoring , Spot invoice finance, Single invoice factoring

3) How selective invoice discounting works

Selective invoice discounting works in a similar way to spot
factoring.

 The company, typically with revenues over £500,000,

assigns an invoice to the discounting company, having
agreed terms and fees

 The discounting company advances a percentage of the

invoice face value to the business client upfront, typically 70-
85%.

 Unlike factoring, invoice discounting helps you keep control

over your own sales ledger and client relationships
4) Advantages of selective invoice discounting
For a fee, invoice discounting companies can unlock funds tied
up in an individual unpaid invoice so that your business receives
a percentage of the funds without waiting for the end customer
to pay. For a large invoice, this process can provide a large cash
boost for a business.
Invoice discounting lets you keep control of your sales ledger
and your client relationships.

5) Disadvantages of selective invoice discounting

Typically, the traditional invoice discounters don't allow
businesses to get finance against their entire sales ledger,
despite the fact that fees are charged against the entire
turnover of the business.
It can take a long time, up to several weeks, to set up with a
selective invoice discounting facility.

6) Glossary
Assigning an invoice
Unlike with traditional ‘whole ledger’ factoring , the business may
not have an existing relationship with the discounting company.
It may take several days or weeks to apply and be approved,
and once that is done funding is advanced when the business
client ‘assigns’ an individual invoice to the discounting company.

7) Next steps
Also see… factoring vs invoice discounting , factoring , invoice
discounting , spot factoring
SELECTIVE INVOICE DISCOUNTING -
MARKETINVOICE'S OFFERING
At MarketInvoice, our selective invoice discounting
solution allows you to get up to 90% advanced against specific
outstanding invoices.
It’s quick and easy to access funds, which means you can get
the cash flow you need to get on with business. With
MarketInvoice, you get:

 Fast funding: quick funding decisions and set-up

 Hassle free experience: easy to use digital interface

 Help in real-time: personal customer support

 Straightforward costs: no hidden fees