PICK AND CHOOSE WHICH INVOICES TO FACTOR

Single invoice finance, also known as spot factoring, is a flexible and affordable way to raise money against your invoices.

Similar to standard invoice factoring, it offers advantages to businesses who do not require a constant source of working capital.  It may also suit organisations who only have a few customers, have seasonal peaks or carry out large projects.

It’s a quick and reliable way to obtain a cash advance on invoices if your customer is creditworthy, and has a good reputation for paying on time.

The system works in the same way as traditional factoring, but you are able to choose which invoices to factor, rather than ‘selling’ your entire sales ledger to the lender.

You send your invoice out as normal, with a copy to the factor, who advances a proportion of the total amount – usually between 80% and 90%.

The factoring company carries out all required credit control procedures, and when full payment has been obtained, sends you the remaining balance less fees for the service.

Single invoice finance funding is a specialist area of lending, but as with regular factoring and discounting, there is no requirement for your business to have an impeccable credit rating.

Lenders focus more on your customer’s expected ability to pay their invoice. Additionally, there is little paperwork to complete and invoices can be paid quickly.

Overall costs are usually higher than standard invoice factoring but the advantage of flexibility is a huge benefit for some businesses.  The amount you pay will usually be based on turnover, the invoice value and the due date of the invoice.

For further information about single invoice finance, please contact us for a no obligation chat today.