HOW SELECTIVE INVOICE FINANCE WORKS (July 22, 2019)
Selective invoice finance is the practice of being able to pick and choose which invoice or invoices, if any, a business wants funded to guarantee sufficient cash flow to meet its commitments on time.
Typical Selective Invoice Finance Transaction
Each transaction has three main parties: the company that sells the invoice, known as the Client; the company that will pay the invoice, known as the Client’s Customer (or account debtor); and the IFG that provides funding through its service.
The client manufactures and delivers the goods or provides the service and issues an invoice to customer.
– The client will sell specific invoice or group of invoices to Interface for cash at a discount.
– The client notifies the customer that the invoice has been assigned to Interface.
– The invoice is then paid by the customer directly to Interface typically within 3-40 days.