Occasional rather than continuous cash-flow requirements
Invoice Finance · UK limited companies
Selective / Spot Invoice Finance
Selective or spot invoice finance funds chosen customer accounts or individual eligible invoices rather than the entire ledger.
NBS Finance is a broker and introducer, not a lender. An enquiry does not guarantee an offer.
How does selective invoice finance work?
Selective invoice finance releases cash against specific eligible B2B invoices or customer accounts. Spot finance usually refers to an individual transaction. You propose what to fund, the provider checks the invoice and customer, and an agreed advance is released. Customer payment clears the funding; the balance follows after charges and other deductions.
Confirm which invoices must be included, who collects payment, the payment account, recourse if the customer does not pay, and any minimum term or volume commitment. Selective does not automatically mean a one-off agreement with no ongoing obligations.
When does selective finance make sense?
It may suit an occasional large invoice, a seasonal supplier payment or a short gap between completing work and receiving payment. It is less useful if invoices are disputed, work is incomplete or the business needs continuous funding across its ledger.
Eligibility and evidence
Providers assess your business and the selected customer, invoice value, payment history and terms, concentration, existing assignments and contract restrictions. Prepare the invoice, order or contract, proof of delivery or acceptance, accounts and relevant bank or ledger information. Eligibility thresholds vary; a strong customer does not guarantee acceptance.
Selective finance vs whole-turnover invoice finance
Selective funding limits the agreed scope to chosen invoices or debtors. Whole-turnover finance supports the agreed eligible ledger continuously and can be more practical for recurring payroll or supplier needs. Compare the cost at your expected annual usage, reporting duties, excluded invoices and minimum commitments.
Invoice discounting describes who normally retains credit control; selective describes what is funded. A selective facility may use a discounting or factoring structure. Factoring normally includes provider-managed collections. Ask what service is actually included rather than relying on the product name.
What does selective invoice finance cost?
Pricing may be a combined transaction charge or separate service and funding charges. Check the amount advanced, fee basis, funding period, minimum charges and any setup or collection costs. Late customer payment may increase cost. Ask for the net cash received and the total charge if payment arrives on time and if it is delayed.
See invoice finance costs and fees and the commercial finance comparison guide. NBS does not set provider prices or charge the client a separate broker fee.
Advantages and disadvantages
Funding only the agreed invoices can match an occasional requirement and avoid financing unrelated sales. The trade-offs can include a higher cost per transaction, repeated checks, restricted debtor eligibility, customer notification and uncertainty about funding future invoices. Guarantees, security and recourse may still apply.
Example use case: a completed wholesale order
Illustrative scenario, not a completed NBS deal. A wholesaler has delivered an order and holds an undisputed B2B invoice payable in 60 days. It needs to pay a supplier sooner. Selective funding could bridge part of that gap if the provider accepts the invoice and customer. The business compares the full charge with its order margin and tests delayed payment before deciding.
If that gap repeats across many customers, compare an ongoing invoice finance facility. If an existing facility already covers the invoice, check the agreement before seeking additional funding; switching providers may be the more relevant discussion.
Common uses
When this may be worth discussing
A small number of suitable large invoices
Businesses that do not want a whole-turnover facility
Prepare the enquiry
Information that helps produce a useful answer
Providers set their own rates, charges, fees, security and terms. Clear evidence helps distinguish a viable route from an unsuitable application.
- The selected invoice and customer
- Proof that goods or services are complete
- Assignment restrictions, disputes and expected payment
Important:
Terminology and availability vary. NBS will confirm whether a suitable route is accessible before describing it as available.
Process
How the enquiry moves forward
Tell us the amount, purpose and timing.
Share the documents relevant to this route.
NBS clarifies the requirement and possible route.
A suitable provider completes its own checks and sets any offer terms.
Decision check
Questions to answer before proceeding
| Question | Why it matters |
|---|---|
| What exact outcome must the finance achieve? | It keeps the proposal tied to a commercial purpose. |
| What is the full cost and repayment profile? | Compare fees, security, frequency, total repayable amount and exit terms. |
| What happens if income arrives later than expected? | A downside view tests whether repayments remain manageable. |
| Which documents or conditions remain outstanding? | Approval, completion and payment are separate stages. |
Common questions
Selective / Spot Invoice Finance FAQs
Can I choose just one invoice?
Some providers fund a single eligible invoice; others require a selected debtor account or minimum volume. Confirm the exact scope and commitments in the proposal.
Is selective invoice finance the same as spot factoring?
The terms overlap but are not identical. Spot usually means a particular invoice transaction; factoring normally includes collections. Confirm who collects, whether customers are notified and what happens if payment fails.
Can a new business qualify?
Some providers may consider a newer business, but still assess the invoice, debtor, trading evidence and business risk. There is no automatic acceptance.
Does my customer need to know?
Notification and payment arrangements depend on the provider and facility. Do not assume selective funding is confidential.
What if the customer pays late or does not pay?
Charges may continue while funding is outstanding. Under a recourse arrangement the business may have to repay or replace the funding. Credit protection, if included, has conditions and exclusions.
Do I need a personal guarantee?
A guarantee or other security may be required. Ask for the scope of liability and review the written terms before proceeding.
What should I send with an enquiry?
Start with the amount and timing, selected invoice and debtor, payment terms and proof the work or delivery is complete. Explain disputes, existing finance and assignment restrictions.
Further reading and scope
This page is general commercial-finance information, not legal, tax or accounting advice. Read the relevant official guidance at www.british-business-bank.co.uk.
NBS Finance primarily supports UK limited companies. NBS Finance is not incorporated as a limited company and is not authorised or regulated by the Financial Conduct Authority. Where applicable, NBS works with lenders and intermediaries that are FCA-authorised for their own regulated activities; their status does not make NBS Finance FCA-authorised.
Tell us the outcome your business needs
Start with the amount, purpose and timing. Best estimates are fine.
Start your funding enquiry