Last updated: 13 Aug 2026

Selective invoice finance

Selective invoice finance lets you choose which individual invoices to fund, rather than financing your entire sales ledger, releasing up to 90% of their value within 24 to 48 hours with no ongoing contract to commit to. 

  • See what you could raise against your chosen invoices

  • Get an advance of up to 90% of invoice value

  • Finance certain invoices or customers only, without committing your whole sales ledger

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What is selective invoice finance?

Selective invoice finance is a type of invoice finance that lets you pick which invoices or customers to fund, instead of financing your whole sales ledger on an ongoing basis. A lender advances you most of the chosen invoice's value upfront, usually up to 90%, then releases the remaining balance once your customer pays, minus their fee. You may see it called selective invoice discounting when it's arranged confidentially, or spot factoring when it's disclosed to your customer, but the underlying idea is the same: you decide invoice by invoice whether to finance it.

How does selective invoice finance work?

Selective invoice finance follows the same basic pattern each time you choose to finance an invoice.

  1. You decide which invoice or customer to finance. Unlike whole ledger facilities, you're not required to submit every invoice you raise.

  2. You submit that invoice to your lender. This can often be done through your accounting software or a simple online portal.

  3. Your lender advances you a percentage of the invoice value. This is typically up to 90%, usually reaching your account within 24 to 48 hours of approval.

  4. Your customer pays the invoice on its normal terms. Depending on whether your facility is confidential or disclosed, they pay you directly or pay your lender.

  5. Your lender releases the remaining balance, minus their fee. Once the invoice is settled in full, you're free to finance the next invoice, skip a month entirely, or stop using the facility altogether.

Why use Capitalise for selective invoice finance?

  • Fund only the invoices you choose

    Finance a single invoice, one customer or a handful of your largest orders, without signing up to fund every invoice you raise.

  • No long term contract to commit to

    Lenders that charge a flat fee per invoice typically have no ongoing minimum, so you only pay when you draw down against an invoice, not for invoices you never finance.

  • Funding within 48 hours

    Once your chosen invoice is approved, funds usually reach your account within 48 hours, so a single unpaid invoice doesn't hold up your cash flow.

How much does selective invoice finance cost?

The cost of selective invoice finance depends on your chosen lender's fee structure, the invoice's value, your customer's payment history and how often you plan to use the facility. The table below shows what to expect:

Cost element

Typical range

Advance rate

Up to 90% of invoice value upfront

Per invoice fee

Around 1% to 3% of the invoice value, charged only on invoices you choose to finance

Fee structures vary by lender, so your funding specialist will confirm the exact rate and how it's charged for any offer before you accept it. A stronger business credit score and a customer with a reliable payment history usually bring your fee down, since the lender is taking on less risk.

Am I eligible for selective invoice finance?

Most lenders on the Capitalise panel assess your business against the following:

  • Your business trades B2B, invoicing other businesses rather than consumers

  • You have some trading history, though minimum requirements vary by lender

  • The invoice or invoices you want to finance are owed by another UK business on payment terms of 30 to 90 days

  • Your business and the customer named on the invoice show a reasonably healthy credit history

What documents do you need to apply for selective invoice finance?

Typically, you’ll need these documents to apply:

  • The invoice or invoices you want to finance, along with your wider sales ledger for context

  • 6 months of business bank statements

  • Your latest set of filed annual accounts, if available

  • Details of the customer on the invoice, including how long you have worked with them

  • Proof of ID for each business director

How do I apply for invoice finance with Capitalise?

  • Green circle with a white number "1" in the center.

    Tell us about your business and the invoice you want to finance

    We'll ask about your turnover, the customer on the invoice and how much you have outstanding.

  • Green circle with white number "2" in the center.

    Get matched with lenders

    Your application is matched against our panel of lenders who specialise in invoice finance for businesses like yours.

  • Green circle with the white number 3 in the center.

    Speak to a funding specialist

    A dedicated specialist talks you through which invoices are worth financing and whether a confidential or disclosed facility suits you better.

  • White number 4 on a solid green oval background.

    Lenders review your application

    Your specialist sends your application to multiple matched lenders, who assess your chosen invoice and customer before making an offer.

  • White number 5 centered on a green circular background.

    Accept an offer and draw down funds

    Once approved, your first advance can reach your account within 24 hours.

Selective invoice finance vs spot factoring: what's the difference?

The main difference between selective invoice finance and spot factoring is who collects payment from your customer once you've financed an invoice. Spot factoring is a disclosed factoring arrangement by definition, so your lender always collects payment directly and your customer always knows. Selective invoice finance can be arranged the same way, or confidentially, so you keep collecting payment yourself and your customer is never told.

Feature

Selective invoice finance

Spot factoring

Who collects payment

Either you, confidentially, or your lender, disclosed, depending on the facility

Your lender, since it's always a disclosed factoring arrangement

Confidential option

Available with some lenders

Not available, your customer is always told

Number of invoices

Can cover an ongoing selection of invoices or customers over time

Limited to the one invoice the facility was arranged for

Best suited to

Businesses that want to choose which invoices to fund, with the option to keep collections in house

Businesses that want a lender to take on collecting a single invoice as a one off

Which businesses use selective invoice finance?

  • Construction subcontractors with a handful of large contracts

    Finance the odd large invoice tied up in a longer payment cycle, without financing every smaller job at the same time.

  • Businesses with a mix of reliable and slow paying customers

    Finance invoices only from the customers who consistently pay late, leaving faster paying customers outside the facility.

  • Businesses trialling invoice finance for the first time

    Test how invoice finance works against one or two invoices before deciding whether a full whole ledger facility suits your business.

  • Seasonal businesses with occasional large orders

    Finance a big seasonal order as it lands, rather than maintaining a facility across quieter months when there's nothing to finance.

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Get selective invoice finance for your business

If only certain invoices or customers are holding your cash flow back, selective invoice finance lets you fund exactly those, without committing your whole sales ledger or signing up to an ongoing contract.

Apply and compare offers from our panel of lenders today.

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