• 11 Jun

    Selective Debtor Finance.

    Invoice finance where you can select debtors to be funded.Selective debtor invoice finance (SDIF - also called single debtor finance SDF) is subtly different from selective invoice finance (SIF), and other types of receivables financing.

    With SDIF, you choose which debtors you want to receive funding against. You then submit all of your invoices, billed only to those chosen debtors, to the finance company for funding. You do not receive funding against any debtors that you didn't select, and you pay fees only in respect of the chosen customers.

    Selective Debtor Invoice Finance

    It can also operate the other way around i.e. you can select the debtors that you want to exclude from the facility i.e. they are not funded, and you pay no fees in respect of sales to them.

    Most of the funders will allow some degree of exclusion of debtors, but some offer SDIF as a specific service, enabling you to choose as few as one single debtor to be funded.

    This is different from "selective invoice finance" where you can choose individual transactions to include within your facility.

    SDIF tends to be used by the mainstream providers to allow some flexibility to exclude debtors from the arrangement. This could be due to various reasons including:

    • Only needing to raise a limited amount of funding.

    • Wanting to exclude certain types of trade e.g. contractual work, or prepaid sales.

    • Wanting to exclude, or include exports.

    • Avoiding incurring charges on particular debtors.

    There are a number of funders that will offer this type of accomodation, but are not prepared to offer a fully selective invoice funding arrangement. Fully selective facilities tend to be more expensive than the whole turnover equivalent (there tends to be a kind of "bulk discount" for funding all your transactions), and so this SDIF style facility offers some of the flexibility of SIF without all of the additional cost.

    Related Materials

    Article - Selective, The Options Explained.

    Case Study - Construction Sector Single Debtor Invoice Finance.

    By Glenn Blackman

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Examples of funders we work with:

berkeley
leumi abl
apollo business finance
seneca
muse
metro bank sme finance