Selective Factoring
Selective factoring is when you choose which debtors you wish to factor. This is in contrast to traditional factoring where you are required to factor your whole turnover. Selective factoring also differs from Spot Factoring where you factor individual invoices rather than all the invoices from a particular debtor.
Selective factoring can be suitable when you have a debtor who is on extended terms and as such places pressure on your cash flow.
In terms of pricing it can often a cost effective solution as you are not paying the service fee on the whole turnover of your business. The rates are often more competitive that spot factoring which as a medium to long terms solution can be expensive.
In terms of criteria it is the same as factoring criteria but your selected debtor obviously needs to be credit worth.
If you are interested in selective factoring it is worth speaking to Smart factoring Quotes on 0845 863 0738.
