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  • Last Updated: 13 May 2026

Selective Invoice Finance in Australia

Unlock the value of selective invoices to boost your business cash flow. Get working capital support and gear your business for growth.

  • Fund specific invoices instead of submitting your entire debtor book
  • Get approved and funded within 48 hours for limits up to $500,000
  • Access up to 85% of specific invoices’ value*
  • Support cash flow and business growth
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Get Invoice Finance with Dark Horse Financial

1

Contact Our Team

Fill out our online form to apply for selective invoice finance. We’ll get in touch with you fast to understand your situation and make a recommendation.

2

Submit Application

We’ll expertly handle your application from start to finish. Some lenders can approve and fund selective invoice finance in just 48 hours for limits up to $500K.

3

Get Funded

Once approved, you’ll get access to a facility where you can submit invoices and get up to 85% of their value.

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What is Selective Invoice Finance in Australia?

Selective invoice finance, also known as single invoice factoring or spot invoice finance, is a type of invoice finance that allows you to receive funding against individual invoices rather than your entire accounts receivable book. This means you can choose which invoices you want to fund based on your cash flow needs.

How Does Selective Invoice Finance Work?

The process is simple:

  1. Apply for a selective invoice facility through our online form. Facilities up to $500,000 can be approved and funded within 48 hours.
  2. Once approved, you can now access the facility and select the invoices you wish to fund.
  3. Choose and submit the invoice you want to finance. The invoice can generally be financed within 24 hours with most lenders.
  4. Receive up to 85% of the invoice value upfront, usually within 48 hours for limits up to $500,000.
    This option is ideal for businesses that want quick access to funds without being tied into long-term contracts or monthly minimums.

Features*

On demand funding

You only access funding when you choose to, rather than maintaining a full book facility.

Minimal ongoing costs

Some facilities have no establishment, line, management, or monthly fees, meaning you only pay when you draw funds.

Fast access to funds

Once the facility is set up, funding can be accessed quickly against approved invoices.

Large advance rate

Most lenders advance up to 85% of the invoice value upfront, with the remaining balance paid once the customer settles the invoice.

How Selective Invoice Financing Helps with Cash Flow

Long payment terms, especially in industries like manufacturing, wholesale, and transport, can strain your ability to meet payroll, purchase inventory, or seize growth opportunities.

By funding just one or a few invoices when needed, selective invoice finance allows you to:

  • Bridge cash flow gaps
  • Improve liquidity without taking on debt
  • Avoid delays caused by late customer payments
  • Take on bigger jobs or more clients with confidence

Whether you’re a small business or a growing enterprise, selective invoice finance is a proven way to stay cash flow positive.

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Difference Between Invoice Finance and Selective Invoice Finance

Both options fall under the umbrella of invoice finance in Australia, but they operate quite differently.

Invoice Factoring involves making your entire accounts receivable book potentially fundable. This type of finance may come with fixed fees and volume commitments, and it’s less flexible for businesses that only need occasional funding.

Selective Invoice Finance, on the other hand, lets you choose individual invoices to fund. There are no ongoing commitments or volume requirements, making it highly flexible and cost effective for businesses with variable cash flow needs.

Is Selective Invoice Finance Better Than Full Book Finance?

It depends on your business needs. Here’s when selective invoice finance may be better:

  • You want flexibility to choose when and what to fund
  • You don’t expect to need to fund every invoice
  • You prefer to avoid establishment fees and monthly service fees that come with normal invoice finance

Full ledger finance can be cost effective for businesses that consistently need funding across their entire ledger. But for businesses looking to finance using the invoices of only one of their customers, or occasionally selective invoice finance can be a better choice.

Who Uses Selective Invoice Finance in Australia?

Selective invoice finance is used by a wide range of businesses across industries such as:

  • Transport and logistics: Cover fuel, wages, and tolls while waiting on customer payments
  • Manufacturing and wholesale: Fund supplier payments and production runs
  • Professional services: Smooth cash flow for consultants, recruiters, and contractors
  • Commercial Construction: Bridge long payment cycles for projects
  • Import/export businesses: Improve working capital while goods are in transit

It’s also a great option for businesses that work with large clients who have extended payment terms.

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Benefits of Selective Invoice Finance

  • Fast access to cash: Funding can be available in hours once a facility is set up
  • Flexible: Use only when you need it
  • No lock in contracts: Finance individual invoices only
  • Improves cash flow: Turn unpaid invoices into working capital
  • Scalable: The more you invoice, the more funding you can access
  • Works with slow-paying customers: Mitigates the impact of extended payment terms

What You Can Use Selective Invoice Finance For

Managing cash flow gaps

Selective invoice finance is commonly used to bridge the gap between issuing an invoice and receiving payment. Instead of waiting 30 to 90 days, you can access funds immediately to keep operations running smoothly.

Paying suppliers and ordering materials

You can use funds from selected invoices to pay suppliers upfront or secure materials needed to complete jobs. This is critical when your payment terms do not align with your supplier obligations.

Covering wages and operating expenses

Selective invoice finance helps ensure you can meet payroll, rent, and other fixed costs while waiting for customers to pay. This reduces pressure on your working capital during busy periods.

Supporting business growth

Access to on demand funding allows you to take on new contracts or increase workload without being constrained by cash flow. You can choose which invoices to fund based on where capital is needed most.

Managing seasonal or uneven revenue

Businesses with fluctuating income can use selective invoice finance only during periods where cash flow is tight. This avoids paying for a facility during periods where it is not required.

Find the Best Selective Invoice Finance Providers in Australia

At Dark Horse Financial, we work with Australia’s top invoice finance lenders to match you with the best selective invoice finance solution for your business. Whether you need a one off funding boost or ongoing access to working capital, we tailor solutions that work for your business and your cash flow needs.

We help you:

  • Access the most competitive rates
  • Find the most favourable terms
  • Get funds quickly when you need them most

Our team understands the cash flow pressures that come with growing a business. We’re here to help you stay agile and financially strong.

Case Study: $50K Selective Invoice Finance Combined With A Line of Credit

A business specialising in signage and scoreboards secured larger contracts with schools and government clients, which shifted their payment terms to end of month after completion.

While revenue was growing, the removal of deposits created a significant cash flow gap. The business could no longer fund materials upfront, and a previous unsecured loan only provided a short term fix while adding repayment pressure.

Most lenders declined the application due to low cash balances, without considering the strength of the contracts and debtor quality.

We took a different approach, presenting the client’s purchase orders and reliable government debtors to a lender outside of a standard credit process. This reframed the situation as a working capital issue rather than a credit problem.

The result was an approval for a selective invoice finance facility combined with a line of credit, both with no establishment, line, monthly, management and service fees, which can all be features of some invoice finance or line of credit products.

This allowed the business to fund materials, deliver on contracts, and continue growing without cash flow constraints.

Working capital and cash flow sorted.

Businesses that Benefit from Selective Invoice Finance

Selective invoice finance is used by businesses that issue invoices and operate on credit terms. This creates cash flow gaps between getting paid by customers and paying essential expenses like rent and payroll. Selective invoice finance can cover these gaps and ensure these businesses remain operational.

Here are the types of businesses that benefit from selective invoice finance:

  • Transport businesses
  • Manufacturing businesses
  • Labour hire businesses
  • Wholesale businesses
  • Supermarket suppliers
  • Suppliers to other large retailers
  • …and more.
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FAQs about Asset Based Finance

Selective invoice finance allows you to choose specific invoices to fund, whereas traditional invoice finance typically requires you to fund your entire debtor book. This means you only use the facility when needed, rather than committing all receivables to the lender. As a result, selective facilities are generally more flexible and can reduce overall costs if you do not require consistently high levels of ongoing invoice funding.

You are not required to use a selective invoice finance facility on an ongoing basis. You can choose when to fund invoices and when not to, depending on your cash flow needs. Some lenders structure these facilities so that no fees are charged when the facility is not in use, making them suitable for occasional funding requirements.
For selective invoice finance, you can typically access around 85% of the invoice value upfront, depending on the lender. The remaining balance is released once the invoice is paid, less any applicable fees.

Your customers may or may not know you are using selective invoice finance, depending on the lender and how the facility is set up. Selective invoice finance is typically disclosed to customers, but not always. In a disclosed facility, customers are made aware through emails, phone calls, or other channels. In a confidential structure, businesses are allowed to manage their own collections, and lenders only step in when the invoices become significantly overdue. Some lenders allow businesses to transfer funds to repay any amount drawn.

We prefer to work with lenders that allow businesses to manage their own collections, or those with non intrusive approaches to collections. This way, the facility doesn’t damage your relationship with your customers. Contact our team to get connected to the right lenders.

If your customer does not pay the invoice, you may be required to repay the funds advanced by the lender, depending on the terms of your selective invoice finance. Most selective invoice finance facilities are provided on a recourse basis, meaning the risk of non payment ultimately sits with your business.
You can use selective invoice finance alongside other funding solutions such as unsecured loans, lines of credit, or equipment finance. In many cases, combining facilities can provide a more balanced approach to cash flow management, allowing you to use invoice funding when needed without relying on a single funding source.
Selective invoice finance is suitable for businesses that issue invoices on credit terms and experience occasional cash flow gaps. It is commonly used by service based businesses, contractors, and companies with large or irregular invoices that create temporary pressure on cash flow. These include businesses in transport, manufacturing, labour hire, wholesale, as well as supermarket suppliers and suppliers to other large retailers and more.
Once the selective invoice finance facility is established, you can usually access funds within 24 hours of submitting an approved invoice. The initial setup may take 48 hours for limits up to $500K, as the lender completes due diligence on your business and customers.
Some selective invoice finance facilities do not charge ongoing fees if the facility is not used. Instead, costs are typically applied only when you choose to fund an invoice. However, fee structures vary between lenders, so it is important to confirm pricing before proceeding.
Fees are usually calculated as a percentage of the invoice value and may depend on how long the invoice remains outstanding. Some lenders charge a flat fee, while others apply a rate over time until the invoice is paid. The exact structure varies and should be clearly understood before using the facility.
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