Factoring Structures - Selective Invoice Factoring
Table of Contents
- Selective Invoice Factoring
- Full Turn Factoring
- Recourse vs. Non-Recourse Factoring
- Spot & Transactional Factoring
- Confidential / Non-Notification Factoring
- DIP (Debtor-in-Possession) Invoice Factoring
- Ledgered Factoring Line
- How to Choose the Right Invoice Factoring Structure
Do I have to factor all of my invoices?
Businesses that just need to smooth out their cash flow – not overhaul it – are often perfect candidates for selective invoice factoring. This flexible approach lets you decide which customers and which invoices you want to factor, allowing you to dial in the specific amount which gives you control over when you access working capital. Using Selective Invoice Factoring you do not have to sell all invoices.
It’s an ideal fit for companies that want to fine-tune their cash flow without committing all their receivables. By choosing specific invoices to fund, you can cover short-term needs, manage growth, and keep operations running smoothly – all on your terms.
Selective Services is ideally suited for businesses with lighter A/R activity or those with larger customer balances where no single customer makes up more than 20% of total sales. It’s ideal when you only want to factor certain invoices without committing your entire customer base.
Marc Marin is a seasoned expert in business financing, author, speaker, and educator with over 20 years of experience helping companies access working capital through factoring and funding solutions. He is known for making complex financial topics clear and actionable for business owners and finance professionals.