Cost
Because a business only finances selected invoices, the costs can be more controlled, and typically, overall costs are less than with other forms of invoice finance.
the low down
Is an Selective Invoice Finance right for you?
Selective Invoice Finance (SIF) is an invoice finance iteration that allows a business to borrow money by using its outstanding invoices (debtors) as collateral.
A business can typically borrow up to 90% of its outstanding invoices to fund its working capital cycle and grow more quickly.
The main difference between selective invoice finance and other forms of invoice finance is the ability to pick and choose invoices to finance. With all other invoice finance, it is pretty much “all in” – a business can utilise its entire debtor book and drawdown against this. With Selective Invoice Finance, they pick and choose which individual invoices to finance. This can be more expensive per invoice but can be cheaper when considering overall costs if not many invoices are financed.
At Sedulo Funding Solutions, we have access to the whole UK finance market and we make business finance easy.
Fancy booking a call (or meet-up) with our team of experts? We can get you a no-obligation quote.
Personal Security
Because the facility's collateral is the business assets, there is a much smaller reliance on personal guarantees. We would expect PGs to be set at approximately 10% of the facility limit as opposed to 100% in many other cases.
Scalable
Invoice finance supports business growth by providing additional working capital as debtors increase, making it an ideal solution for fast-growing companies.
Debtor protection
Any business that trades on credit terms has the insolvency risk of the debtor. Invoice Finance can provide bad debt protection which safeguards a business from its customers going into liquidation, owing them money.
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Our Answers To Your Questions
We’ve put together a list of common Business Loan FAQs. If there’s something you want to know and you can’t find the answer here, get in touch with our team of finance experts.
The costs of Selective Invoice Financing include a discount fee, which is a percentage of the invoice value, and sometimes a service fee. The exact cost will depend on factors like the value of the invoice, the creditworthiness of your customers, and the terms offered by the finance provider. Since you only finance selected invoices, costs are generally lower compared to full ledger invoice financing.
The amount you can borrow depends on the value of the specific invoices you choose to finance. Finance providers typically advance a percentage of the invoice value, usually between 70-90%. The total available funding depends on the number and value of invoices you select for financing.
Yes, Selective Invoice Financing can be suitable for start-ups, particularly those with a small number of high-value invoices or those that need occasional cash flow support. It allows start-ups to access funds without committing to long-term financing agreements, making it a flexible option as the business grows.
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A Team Of Finance Experts, On Your Side
Whether you’re looking to obtain funding to take on the next stage of business growth or access working capital to cover costs, it’s important to have a team of experts on your side.
Our experienced funding team operates out of each city centre office in Manchester, Leeds, Liverpool, London and Birmingham. We’re available to meet face-to-face so that we can better understand your business and talk you through your funding options, or we can assist over the phone – whichever you’d prefer!
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