Invoice finance

Selective invoice finance

Also known as spot factoring or single invoice finance. Upload selected invoices, a credit limit is set per customer, and funds are transferred to your account — up to 90% of invoice value. No whole-turnover commitment.

Apply for Selective invoice financeInstant invoice quoteLearn moreOn qedfinance.com
Range
Single invoices
Term
Invoice by invoice
Family
invoice
Search
Full market, one file

At a glance

  • No long-term contract
  • Up to 90%
  • Choose the invoices
  • Per-customer limits

How it works

  1. 1You pick the invoices you want to fund — one or several, not the whole ledger.
  2. 2You upload the customer; the platform sets a credit limit.
  3. 3The provider often verifies that goods or services were received and that the invoice will be paid to terms.
  4. 4Up to 90% is paid into your account, typically within 24 hours.
  5. 5No long-term whole-turnover contract. Dip in and out as cash flow requires.

Who it’s for

  • Businesses that only occasionally need to fund invoices
  • Companies that do not want a whole-ledger commitment
  • B2B invoices where the debtor will pass a credit limit

Good to know

This is not confidential — customers will know.

Rates are often higher pound-for-pound than a whole-turnover factoring or discounting line. Fine for a few invoices a month; expensive if you fund the lot.

Also known as spot factoring or single invoice finance.

One application with QED searches the full market. That saves you running the same file around several lenders, and it avoids multiple credit searches on the business and directors. A hard search is only placed when you proceed with a chosen lender.

Worked example — £1,200 invoice

  • £1,200.00 gross sales invoice (incl. 20% VAT)
  • 30-day credit terms offered to the customer
  • Funder advances 85% against invoices
  • Customer pays 22 days late
  • Service charge assumed at 2%

Day 1

With invoice finance

£0 — goods delivered, invoice raised

Without

£0

Day 2

With invoice finance

£1,020 in the bank (85% of £1,200)

Without

£0

Day 40

With invoice finance

Still £1,020 — invoice is 10 days overdue

Without

£0 — still waiting

Day 52

With invoice finance

£1,176 net after the advance is repaid and 2% charged

Without

£1,200 lands in one go

You had 85% of the money on day 2 — cash to buy the next job, pay staff or take a discount from suppliers. By day 52 you have £1,176 of the £1,200 (the 2% fee). Same numbers as qedfinance.com/how-does-invoice-finance-work.

You wait the full 52 days with nothing. Late payers freeze payroll, materials and the next contract. That is the cash-flow problem invoice finance is built to solve.

Documents QED will ask for

Same list as the attach-files section on the website application. Tick what you have when you apply; email the rest.

  • Last published accounts (full accounts, not abbreviated)
  • Latest management accounts if year-end is stale
  • Last 3 months’ business bank statements
  • Last month-end aged debtors report (summary)
  • Last month-end aged creditors report (summary)
  • Live customer names, addresses and contacts
  • Existing invoice-finance contract and latest statement (if refinancing)

FAQ

Drawn from qedfinance.com and the way the UK market actually underwrites these facilities.

Is there a minimum?

Providers vary. Some will fund a single invoice; others prefer a small batch. QED will match the size of the ask.

Why would I not just take whole-turnover factoring?

If you only have a seasonal spike, a disputed larger invoice, or you are testing the product, selective funding avoids a 12-month whole-ledger contract.

Will my customer know?

Yes. Selective / spot / single-invoice finance is not confidential. The provider often verifies that goods or services were received before advancing.

Is it more expensive?

Pound-for-pound, usually yes versus a whole-turnover line. That is the trade-off for no 12-month commitment. Fine for a handful of invoices; expensive if you fund the whole book this way.

Is invoice finance only for struggling businesses?

No. The UK industry serves around 50,000 clients borrowing over £16 billion at any one time, from start-ups to multi-nationals. Growing companies use it because the facility grows with the sales ledger.

Will this affect my credit score?

Starting a search with QED does not place a hard search. Credit checks that can affect a score only happen when you proceed with a chosen lender.

Do my customers have to know?

It depends on the product. Invoice discounting is confidential. Factoring is usually disclosed (a notice of assignment on invoices), though a few UK providers offer confidential factoring.

Prefer a number first?

Run the same calculator that sits on the website, then apply if the shape looks right.

Open the calculator

QED is a broker, not a lender. A low credit score can limit options with some houses; a search with us does not place a hard search on the business or directors until you proceed with a chosen lender.