
How invoice finance works
The term select invoice finance has been creeping into the funding lexicon. The reason that it is called select invoice finance is that it refers to the increasingly popular practice of being able to pick and choose which invoice or invoices, if any, you want funded. This allows you to maximize the amount of cash that you have on hand while incurring the minimum fees to guarantee sufficient cash flow.
Typical Select 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.