Most Invoice Finance companies will insist that you put all of your invoices for every debtor through them, therefore even if you do not want to borrow against them you will pay a service fee increasing the overall cost. At Beacon Finance we have a number of lenders that are willing to allow you to pick and choose which of your customers you fund against. This is particularly of benefit if you have some customers that are quick payers or insist you don’t use invoice finance so you can choose to exclude them from your funding.
Am I suitable?
Selective invoice finance can suit many businesses, we regularly assist businesses moving from a more traditional invoice finance facility into a selective agreement. We see more and more businesses opting for selective when they are first time invoice finance users. If cashflow is stretched picking one debtor to fund against gives a cash injection whilst not having to assign all debtors to al lender. The benefits are a reduction in your fees and an easier finance facility to manage.
A selective facility can also work really well for seasonal businesses who otherwise would be subject to year round charges, by selecting certain customers to fund and negotiating a flexible invoice finance agreement you can ensure you only pay for funding when you need it. We have arranged many seasonal facilities, often assisting our clients with trade finance at the same time if importing goods.
This is a growing sector of the market which new lenders appearing regularly, we therefore encourage business to regularly review their lender and see how Beacon Finance can save you money.
Selective versus spot & full invoice finance
If you are regularly looking to raise finance against only one specific debtor it often works out cheaper to have a selective facility. However if you find that you regularly need to fund against different debtors this leaves two main options. If your funding requirements are high in comparison to your debtors then we can assist with a full invoice finance facility. However, if your funding requirements are fairly low but you need to raise finance against multiple debtors we can look to organise a spot invoice finance facility where you pick and choose which invoices to fund against.
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