The rise in popularity of Selective Invoice Finance
Over the past 12 months, Selective Invoice Finance is a product which has seen an increased level of interest. There are a number of reasons more and more businesses are using it as a way to fund their business, and here we discuss some of the main points.
An increased level of flexibility
The key difference between Selective Invoice Finance and the more traditional Factoring product is the flexibility. With Selective, you are able to simply fund customers you choose to fund, instead of having to commit your full sales ledger. This gives you the ability to maintain relationships with customers which pay quickly and on time, and simply only pay for those customers you are looking to raise funds against.
A lower level of tie in
With Selective Invoice Finance, you will generally have a much shorter contract than Factoring, or even in some cases no contractual period. This allows businesses to only use the facility for the period which they require the funding, and not be tied in for longer than they need to be.
Perfect for new contracts or orders
When a business wins a new contract or order, sometimes it can put pressure on their cash flow as it will also come with increased costs. Selective Invoice Finance will allow you to borrow solely from the new contract or order, relieving the cash flow pressure relating to the new work. Without the cash flow pressure, you can focus on other important areas of your business.
Overall, Selective Invoice Finance is a great way for businesses to fund individual or small portions of their ledger, without being tied into long term contracts.