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Selective factoring is where the client chooses which customers they wish to factor. This compares to traditional whole turnover agreements where clients are expected to notify their whole turnover from every customer.

Selective factoring is available within the market however very few lenders offer this.

The benefits of selective factoring are as follows:

  • selective factoring means that you can choose specific customers that are perhaps slow payers
  • selective factoring means that specific sensitive customers can be left out of the factoring agreement
  • selective factoring can reduce administration and finance costs as not all turnover has to be included in the agreement.

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