Single Invoice Finance

How Does Single Invoice Finance Work?

The process is straightforward. Most businesses can go from application to funds in their account within 24 to 48 hours.

1. Choose your invoice. You select the invoice (or invoices) you want to finance. There is no obligation to fund your entire sales ledger.
2. Submit your application. Provide the invoice details, proof of delivery or completion, and basic information about your customer. A broker like Wise Factoring can handle this for you and match you with the right funder.
3. Credit check on your customer. The funder assesses your customer’s creditworthiness rather than focusing primarily on your own financial history. This is one reason single invoice finance can suit newer businesses.
4. Receive an advance. Once approved, the funder advances a percentage of the invoice value — typically around 80% — directly into your bank account, usually within 24 hours.
5. Your customer pays. When your customer pays the invoice on its normal terms, the funder releases the remaining balance to you, minus their fee.

You stay in control throughout. There is no ongoing commitment, and you only use it when you choose to.

How Much Does Single Invoice Finance Cost?

Single invoice finance is usually charged as a fee per invoice rather than an ongoing service charge. As a guide:

• New start companies and smaller invoices: fees are typically around 3–3.5% of the invoice value.
• Businesses with a turnover above £200,000: fees can come down to around 1.8%.

The exact cost will depend on the invoice value, the payment terms, your customer’s creditworthiness and whether bad debt protection is included. Because of the flexibility it offers, single invoice finance is usually slightly more expensive than a whole-turnover factoring or discounting facility, and the advance rate is typically around 80%.

Worked Example

Suppose you have a £20,000 invoice with 30-day payment terms and you arrange single invoice finance at a fee of 3.5% with an 80% advance rate:

• Advance received (day 1): 80% of £20,000 = £16,000
• Fee: 3.5% of £20,000 = £700
• Balance on settlement: £20,000 − £16,000 − £700 = £3,300

You receive £16,000 upfront to cover wages, materials or other costs, and the remaining £3,300 once your customer pays the invoice. The £700 fee is the total cost — there are no hidden charges.

Who Is Single Invoice Finance Suitable For?

Single invoice finance can work for most B2B businesses that invoice on credit terms. It is particularly well suited if you:

• Need cash flow support occasionally rather than every month.
• Have one or two large invoices tying up your working capital.
• Have a slow-paying but creditworthy customer and need to bridge the gap.
• Have won a new contract or large order and need to fund delivery before you are paid.
• Are a newer business without the trading history some lenders require — because the funder focuses on your customer’s credit, not yours.
• Want flexibility without committing to a long-term facility or funding your entire ledger.

Industries where we regularly arrange single invoice finance include recruitment, construction and trades, transport and logistics, IT and telecoms, and professional services. If you invoice other businesses for work you have already completed or goods you have delivered, there is a good chance it can work for you.

When Is Single Invoice Finance NOT the Right Option?

Single invoice finance is a flexible tool, but it is not always the best fit. You may be better served by a different type of facility if:

• You need to finance invoices every month. If cash flow gaps are a regular occurrence, a whole-turnover invoice factoring or invoice discounting facility will almost certainly work out cheaper per invoice and give you a continuous funding line.
• Your customers pay very quickly. If most invoices are settled within 7–14 days, the cost of single invoice finance may not be justified — the advance period is too short to make the fee worthwhile.
• The invoice is disputed or not yet due. Funders will only advance against invoices for work that has been completed and accepted, or goods that have been delivered. Milestone payments not yet earned, or invoices under dispute, will not normally be eligible.
• Your customer has poor credit. Because the funder relies on your customer paying the invoice, a customer with a weak credit profile or a history of late payment may not be accepted.

If you are unsure which option suits your situation, get in touch — as a broker we can compare the full range of invoice finance products and recommend the one that fits.

Single Invoice Finance vs Factoring vs Discounting

If you are weighing up the different types of invoice finance, this comparison may help. Each has its place — the right choice depends on how often you need funding, how much control you want, and whether your customers know about the arrangement.

Not sure which type suits you? Read our invoice factoring and invoice discounting pages for more detail, or ask us directly — we compare all three as part of every enquiry.

Real Examples From Wise Factoring Clients

We have arranged single invoice finance for businesses across a range of industries and invoice sizes. Here are some examples that show how it works in practice:

• Recruitment agency, £8,000 invoice. A staffing firm needed to cover temporary worker wages while waiting 45 days for a large client to pay. We arranged spot factoring against the invoice, giving them the cash to meet payroll within 24 hours.
• Telecom engineering contractor, £30,000 invoice. A telecoms subcontractor had completed a project for a national carrier but faced a 60-day payment cycle. Single invoice finance released most of the value of that invoice so the business could fund materials for its next job without waiting.
• Start-up business, £15,000 invoice. A new company without a track record struggled to get traditional finance. Because single invoice finance is based on the end customer’s creditworthiness, the funder approved the facility and the business was able to take on further work immediately.

Every situation is different. If you would like to discuss your circumstances, contact us for a no-obligation conversation.

Why Use Wise Factoring for Single Invoice Finance?

As a specialist invoice finance broker, we work with a panel of funders — not just one — so we can match your invoice to the provider offering the best terms for your situation. Our role is to:

• Understand your requirements and explain your options clearly.
• Find a funder that will accept your invoice, your industry, and your customer.
• Handle the paperwork and chase the process so you get funded as quickly as possible.
• Give you honest advice — including telling you if a different product would be cheaper or more appropriate.

There is no fee from Wise Factoring for this service. The funder pays our commission, so the cost to you is the same whether you come through us or go direct — but with a broker you get choice and a second opinion.

When Should You Move to a Full Invoice Finance Facility?

If you find yourself using single invoice finance regularly — more than two or three times a quarter — it is usually worth considering a whole-turnover factoring or discounting facility instead. The per-invoice cost will be lower, and you will have a continuous funding line as your sales grow. We can help you make that transition when the time is right. Read more about revolving credit facilities as another flexible option.

Single Invoice Finance FAQs

For a much deeper dive into how single invoice finance works, read our comprehensive 50 Questions About Single Invoice Finance guide — it covers everything from eligibility and documentation to credit insurance and real-world examples.