# Selective vs Full-Ledger Invoice Finance Source: https://www.cashbookfinance.co.uk/insights/selective-invoice-finance-vs-full-ledger Last updated: 2026-10-26 Author: Bjorn Laku, Director & Chief Marketing Officer (https://www.bjornlaku.com/) Publisher: Cashbook Finance Limited > Compare selective invoice finance with full-ledger facilities for one-off invoices, recurring funding, costs, control and working-capital planning. FCA-registered UK lender FRN 782472 ## Selective vs full-ledger funding. This is a choice between solving a specific invoice gap and installing an ongoing working-capital facility. The right answer depends on how often the gap repeats and how much of the debtor book you want inside the facility. Written and reviewed by [Bjorn Laku](https://www.cashbookfinance.co.uk/bjorn-laku), Director & CMO. INV-2048 · Arden Health Group Illustration Cash received · this invoice A £50,000 invoice on 30-day terms - **Invoice value** £50,000 - **Paid to you, day 1–2** £45,000 - **When your customer pays** £4,000 Invoice value · £50,000 Illustrative: a 90% advance and a discount charge of about 2% of the invoice. Rates and advances vary by business, sector and customers. Check eligibility **£30m+** funded · **100+** UK businesses since 2019 · London SE1 - FCA **782472** - ICO **ZB545200** - Companies House **10723098** Option 1 **Selective finance** Funds [chosen invoices](https://www.cashbookfinance.co.uk/insights/single-invoice-factoring) when you need cash without committing the whole debtor book. Pick invoices · One-off flexibility · Light commitment Option 2 **Full-ledger facility** Funds across the debtor ledger as an ongoing working-capital structure. Whole book · Repeat usage · Operational discipline Decision shortcut **Use this rule** Use selective finance for occasional pinch points. Use full-ledger funding when invoice timing is a recurring constraint. Occasional gap · Recurring cycle · Facility depth - [Invoice Finance vs Overdraft](https://www.cashbookfinance.co.uk/insights/invoice-finance-vs-overdraft) - [Invoice Finance vs Business Loan](https://www.cashbookfinance.co.uk/insights/invoice-finance-vs-business-loan) - [Invoice Factoring vs Invoice Discounting](https://www.cashbookfinance.co.uk/insights/factoring-vs-invoice-discounting) - [Trade Finance vs Invoice Finance](https://www.cashbookfinance.co.uk/insights/trade-finance-vs-invoice-finance) - [Bridging Finance vs Development Finance](https://www.cashbookfinance.co.uk/insights/bridging-finance-vs-development-finance) - [Bridging Finance vs Commercial Mortgage](https://www.cashbookfinance.co.uk/insights/bridging-finance-vs-commercial-mortgage) - [Invoice Finance Costs Explained](https://www.cashbookfinance.co.uk/insights/invoice-finance-costs-explained) - [Bridging Finance Costs Explained](https://www.cashbookfinance.co.uk/insights/bridging-finance-costs-explained) Check eligibility · About 2–3 minutes, no credit search. ### Selective or full-ledger funding: the practical difference. Funding logic **Scope** Selective funding targets one or a small number of invoices. Repayment logic **Best use** Useful for a specific large invoice or short-term timing gap. Main watch-out **Watch-out** A full facility may be excessive where the need is genuinely occasional. Selective vs full-ledger funding: comparison table | Question | Usually stronger when | Watch-out | | --- | --- | --- | | Scope | Selective funding targets one or a small number of invoices. | Full-ledger funding works across the wider debtor book. | | Best use | Useful for a specific large invoice or short-term timing gap. | Useful where credit terms regularly stretch working capital. | | Admin | Usually narrower information around the selected invoices. | Requires broader ledger reporting and ongoing discipline. | | Watch-out | Repeated one-off use can signal that a full facility is more honest. | A full facility may be excessive where the need is genuinely occasional. | Worked example ### One invoice, funded on its own. A business funds a single £60,000 invoice to a large customer on 60-day terms and leaves the rest of its ledger alone. You pay only for the invoice you choose; if you would fund every month, a full-ledger facility is usually cheaper. Check eligibility · Talk it through with a director | Invoice value, on 60-day terms | £60,000 | | --- | --- | | Advanced within 24–48 hours (90%) | £54,000 | | Discount charge, about 2% per 30 days, for 60 days | £2,400 | | Paid to you when your customer pays | £3,600 | | Total cost of funding this invoice | £2,400 (4% of the invoice) | Illustrative: up to 90% advanced and a discount charge of about 2% of the invoice per 30 days. Rates, advances and any service fee vary by business, sector and customers, and are confirmed in writing before you commit. ### Selective or full-ledger funding: use the comparison to make a funding decision. Decide whether the need is genuinely occasional or part of the normal working-capital cycle. #### Scope Selective finance funds chosen invoices; full-ledger finance supports a broader revolving pool. #### Cost pattern Selective use can be more expensive per invoice; full-ledger facilities may include minimums and ongoing fees. #### Suitability Selective works best for isolated high-quality debts; recurring pressure usually points to a whole-ledger review. Examples are educational only. Eligibility, pricing, security and final terms always depend on a formal assessment of your business, your documents and the facility proposed. [Compare five funding options side by side](https://www.cashbookfinance.co.uk/compare) **Related guidance:** [Invoice finance](https://www.cashbookfinance.co.uk/invoice-finance) · [Pricing & decisions](https://www.cashbookfinance.co.uk/pricing-decisions) · [Eligibility](https://www.cashbookfinance.co.uk/eligibility) · [Case studies](https://www.cashbookfinance.co.uk/case-studies) Quick answers ### Common questions. Check eligibility · All questions **Is selective finance more expensive?** Per invoice it can be, but there are no minimums or whole-ledger fees. Over many invoices a full facility is usually cheaper. **Can I switch later?** Yes. Many businesses start with selective finance and move to a full facility as the need becomes regular. **Will my customer know?** Usually the funded invoice is disclosed to that customer. Ask if confidentiality matters. **How quickly is a selected invoice funded?** Once approved, typically within a day or two. Can’t see your question? Talk it through with a director ### More guides on invoice finance - [Working capital benefits](https://www.cashbookfinance.co.uk/insights/working-capital-benefits) - [Asset-based lending vs invoice finance](https://www.cashbookfinance.co.uk/insights/asset-based-lending-vs-invoice-finance) - [How invoice finance fixes cash flow](https://www.cashbookfinance.co.uk/insights/invoice-finance-cash-flow) - [Invoice finance for digital media agencies](https://www.cashbookfinance.co.uk/insights/invoice-finance-digital-media-agencies) - [Invoice finance for recruitment agencies](https://www.cashbookfinance.co.uk/insights/invoice-finance-recruitment-agencies) - [Late payment and UK SME cash flow](https://www.cashbookfinance.co.uk/insights/late-payment-cash-flow-uk-smes) --- Cashbook Finance. Cashbook Finance Limited is registered with the Financial Conduct Authority under Firm Reference Number 782472. Company number 10723098. Registered office: Cumberland House, 24–28 Baxter Avenue, Southend-on-Sea, Essex SS2 6HZ. Registered with the Information Commissioner’s Office under reference ZB545200. All finance is subject to eligibility, satisfactory due diligence, credit approval and agreed terms. Invoice finance, trade finance and bridging finance may not be suitable for every business. The availability, structure, amount, pricing, fees, security requirements and completion timescales of any facility will depend on the applicant’s circumstances, the quality of the supporting evidence provided and our assessment of the proposed transaction. Any figures, examples, rates or timescales shown on this website are for illustrative purposes only and do not constitute an offer, commitment or guarantee of finance. Terms and conditions apply. Bridging finance is secured against property. Your property may be repossessed if you do not maintain repayments on a loan secured against it. Applicants should obtain independent legal, financial and tax advice where appropriate.