Selective Factoring

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What is Selective Factoring?

Selective or Spot Factoring is a way of raising cash promptly by choosing which invoices you want to use to release funds.

The selective factors will release a percentage of the total funds of all the invoices to you so you have available funds to carry on with your business. You could typically release between 80-90%.

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How does Selective Factoring work?

You continue to send out the chosen invoices to your customers then the factoring lender will assume credit management of your selected invoices and will then chase your customers for the invoice payments.

When all is paid, the factoring company will release the rest of the funds, usually 10-20%, to you less any fees.
The factoring company makes profit by taking a small percentage of the total invoice fee.

Choosing Selective factoring allows you to:

  • Be flexible with your choice of invoices
  • Provides funds quickly
  • Provides on going working capital
  • Keep out of debt
  • Keep good credit
  • Pay staff
  • Purchase materials
  • Pay HMRC
  • Avoid having to chase payments
  • Continue with business without the worry of paperwork

At Select Factoring

We use a panel of the UK’s best Lenders who are specific to every industry, so if you work in manufacturing, construction or services we can direct you to a lender that specialises in your particular business activity.

Due to banks holding back on lending, selective factoring is one of the remaining choices for companies to raise money quickly. Access to working capital is paramount for the success of any business, and by using selective factoring, a business can maximise opportunities.

Choose Select Factoring if you want to use Selective Factoring to raise funds from your invoices.

Contact us here.  We are ready to hear from you.

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