It is now possible to obtain one off factoring against a single debtor. One finance company has entered the market whereby once you are set up with the finance company you can pick and choose which invoices you factor.
Needless to say this facility will not work if the debtor is of a poor quality and has a bad credit rating. Single debtor invoice finance can sit alongside other banking facilities however it wont work if you are already factoring or invoice discounting. A single invoice can be discounted at any point up to 90 days of it being issued. The minimum size invoice that can be discounted is £5,000 and there is an initial minimum charge of 5% for the first 21 days that the money remains unpaid. Depending on the remaining number of days the invoice remains unpaid a small amount accrues on a daily basis over and bove the initial 21 days.
This facility can be used for a one off invoice however it can also be used as as little or as often as you require. There is no on going fee just the standard charges and and when you decide to factor your invoices. The advantages of this kind of funding are obvious particularly for those businesses not wishing to be tied up for a full factoring facility. In addition if a business finds its self using the funding more and more often then it is possible to switch to a full factoring or invoice discounting facility.
