If you’re an SME looking for information on selective invoice discounting, you might have one or more of the following issues in mind:
In this article, we’ll look at selective invoice discounting in detail, including:
If you already know you want to try selective invoice discounting with Financefair, reach out to us to get started.
Invoice discounting – also known as invoice financing – is a funding solution that’s widely available in Ireland. It allows you to use your sales ledger to get a cash advance on customer invoices. We’re the only invoice discounting provider in Ireland that can offer you a choice between:
Invoice discounting can also either be:
With selective invoice financing, there’s no tie-in. Your facility is available for you to use when you need it, and you choose which invoices to finance and when to do it.
The cost of funding with Financefair typically ranges from 0.75% to 1.50% per 30 days, depending on the product type, term, credit quality, and several other factors.
Selective invoice discounting typically costs slightly more than the full book option. When you apply for funding and get your offer from us, it will include the total cost. This comprises three fees:
Here are some examples of what an ID facility with Financefair might cost, comparing selective with full book:
|Cost per 30 days (selective)
|Cost per 30 days (full book)
Use the calculator on our selective invoice discounting page to get an idea of how much it would cost for you.
We can finance individual invoices from €30,000 and provide up to €50m in annual funding if your company meets our criteria:
Getting started with Financefair selective invoice discounting is easy:
Founded in 2015 by a team of accounting and finance professionals, Financefair (initially called InvoiceFair) provides flexible tailored working capital solutions that help ambitious businesses grow faster.
This includes funding options like revenue based financing, line of credit, and both full book and selective invoice discounting – and we’re the only provider of selective invoice discounting in Ireland.
So why should you choose Financefair to grow your business?
Many invoice discounting companies need you to upload information to your account daily at a particular time, plus your bank statements each week. This creates a lot of admin that can be a drain on resources.
With Financefair, the technology in our platform means there’s no need to upload information manually – we can fund your account automatically. This saves you and your team time and energy that can be better spent growing the business.
As part of the application and onboarding process, we’ll speak with you to understand your business, immediate needs, and future growth plans. We’ll also use data analytics to get an accurate understanding of your circumstances and funding requirements.
The support doesn’t end once your initial funding is approved and your facility is set up. Going forward, we’ll work together to review your funding regularly, using our industry knowledge and decades of financial services experience to make sure you have the best finance solution for your business needs.
As well as selective invoice discounting, we also offer other business finance products – all of which are off balance sheet and require no personal guarantee. These include:
You also have the option of starting with selective invoice discounting and moving to full book if it would work better for you.
We know it can be tricky to get funding from banks if you have a subscription or recurring revenue model, as they often only want to fund businesses with blue-chip debtors. But as long as you meet our eligibility criteria, we can finance these different business models.
Meritcom, a leading data and telecommunication services provider, has operated for over 20 years.
The company won a multi-million euro contract with a social media company to provide sub-contracting services for a large-scale data centre project in Denmark. Meritcom was to provide highly skilled workers for services such as power and electrical works during the build phase of the data centre site expansion.
As the project ramped up, the labour requirement increased, along with the working capital requirements. The repayments from the primary contractor were on a 30-day payment term cycle, but Meritcom paid their staff weekly, which created a cash flow gap.
Meritcom needed a cash flow strategy that would cover the initial set-up costs of the project before they received any payments from the primary contractor. We took our time to understand the business’s working capital needs and ultimately suggested selective invoice financing.
This solution allowed Meritcom to leverage 70% of the purchase order in the initial set-up phase to assist with the capital costs at the start of the project and 90% of completed worksheets to provide working capital as the project moved through the design and build phases.
Find out more in our case study on Meritcom.
In this article, we’ve taken a deep dive into selective invoice discounting, looking at how it works and how you can get started with us at Financefair, the only finance provider of selective invoice discounting in Ireland.
We’ve also seen how selective invoice discounting was the ideal solution to close a cash flow gap in a big contract, where there was the need for an initial outlay to get set up before any payments came in, plus weekly payments to workers going forward.
If you could benefit from the option to finance some of your invoices as and when you need to, reach out to us today to get started.