Single Invoice Factoring
A Single Invoice Factoring service is a perfect short-term finance option, allowing you to quickly unlock cash from the large invoice, without the hassle of long-term contracts. This type of funding is an innovative way to access the cash which is tied up in your sales invoices, but as its name suggests it can be used for just a single invoice (minimum value £10k) or a single customer.
Your customer needs to be credit-worthy (not too much to ask), but the funders will often provide bad debt protection as part of the package, thereby giving you peace of mind if your customer happens to go into administration or receivership while still owing you money.
What is Single Invoice Factoring?
Single Invoice Factoring is when a business wants to fund one invoice in a timely manner without waiting for its customer to pay in their contractual payment terms of 30, 60 or 90 days. Your business can often have cash locked up in a one-off large invoice that puts you under pressure while you wait for them to pay. It’s quick, convenient and affordable.
You can draw down up to 85% of the invoice value for up to 120 days, but as with most financial products, the more you borrow and the longer it’s outstanding, the more you will pay. However compared to a whole-turnover facility it can save you a lot of money. There is no tie in and no minimum fee. You can use it when you want and as often as you want or just once and never again. You choose.
Single invoice finance, also known as selective finance or spot factoring, offers businesses the opportunity to release the funds tied up in individual unpaid invoices.
The type of factoring does not need you to sell your entire sales ledger online invoice Factoring and invoice discounting. Funds are available to be drawn down as an injection of cash, by using the facility on a business invoice-to-invoice basis.
The differentiation between the most competitive discounting company and the most expensive invoice discounting can be remarkable. For example when working with businesses who already use this service we have sometimes been able to half their costs.