What is Single Invoice Finance?

Single Invoice Finance is a great option if you only have the occasional requirement to release cash tied up in an invoice. It’s a less formal arrangement without the requirement to sign a contract, it can be used as and when you need it.

Typically, a single invoice finance company will include bad debt protection in their fixed fee and won’t require a personal guarantee. They will base their lending decision on the strength of your client’s credit worthiness, removing the need for you to put up your personal assets as collateral.

While this is a fantastic way to boost your cash flow on an occasional basis, the fees for single invoice finance are slightly higher than a more formal arrangement with a factoring or discounting company. In some instances, the advance rate may be slightly lower at 80%.

For many of our clients, this is a great way to ‘test the water’ with invoice finance. We constantly review how often you are using the facility and advise you when the time would be right to reduce your fees by moving to a more permanent facility.

Summary of Benefits

Single Invoice Finance, also known as spot Factoring, offers specific advantages to businesses with an occasional need for working capital:

It allows businesses to choose specific invoices to release cash from, providing flexibility to address immediate cash flow needs without committing to long-term contracts. This flexibility is especially beneficial for businesses with sporadic or irregular invoice cycles.

Businesses can access funds quickly by selecting individual invoices to finance, providing immediate cash without waiting for entire batches or sets of invoices to mature.

It also offers businesses a level of control. They can choose only the invoices that require immediate cash rather than committing their entire sales ledger.

Unlike traditional factoring arrangements that may involve long-term contracts, single invoice finance allows businesses to use the service as needed without being tied to ongoing obligations.

By having the option to finance specific invoices, businesses can strategically manage their cash flow, addressing short-term financial needs without affecting their overall financial structure.

As the facility is based on individual invoices, businesses can mitigate the risk associated with volatile or uncertain customers by choosing to finance invoices from more reliable clients.

Single invoice finance often involves a simplified and expedited approval process, enabling businesses to quickly access funds without having to provide extensive paperwork and legal documents.

These benefits make single invoice finance an attractive option for businesses looking for on-demand and selective access to immediate cash flow, without committing to long-term contracts or involving their entire sales ledger.

If you are interested in exploring single invoice finance, please get in touch so we can understand your requirements and discuss your options. The pool of funders for single invoice finance is higher for larger invoice values, so it’s important we know the typical invoice value before we recommend any funders.

See our video that explains the difference between Single and Selective Invoice Finance. Please note that since this video was made, more funders have come into this market. The fees for smaller invoices can be as low as 1.75%, however the video will give you an insight into how the facilities work.

Our Other Invoice Finance Services

Invoice Factoring

Invoice Factoring is a popular choice for newly established or growing businesses. The funder will advance between 85%-90% of the invoice value and manages the credit control on your behalf, confidentially if required.

Invoice Discounting

Invoice discounting is a valuable financial tool for businesses seeking enhanced cash flow management. With invoice discounting, businesses maintain control over their sales ledger while unlocking the cash tied up in outstanding invoices.

Woman using a calculator for some calculations

Revolving Credit Facilities

Established businesses with a turnover above £1M often prefer a revolving credit facility. With no requirement to upload invoices and typically available without a personal guarantee, a revolving credit facility is a fantastic ‘In case of need’ product.

Construction Finance

In the construction industry, Construction Finance is used to release cash against your applications for payment or payment certificates. It can also be used in other industries that receive staged or milestone payments throughout the term of a contract.

Switching Funder

If your Invoice Finance facility is due for renewal, it’s worth reviewing your fees, service levels, funding amount and concentration limits to see if there is a better deal, or a more suited facility on offer in the market.