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Need to unlock cash from a single large invoice? Single invoice finance lets you fund individual invoices when you need to — no ongoing commitments, no minimum volumes, no long-term contracts. The "pay as you go" option for invoice finance.
Single invoice finance — also known as spot factoring, selective invoice finance, or invoice trading — is exactly what it sounds like: the ability to get funding against a single invoice without any ongoing commitment. Think of it as "invoice finance on demand".
Upload the invoice you want to fund along with proof of delivery or service completion. No need to submit all your invoices.
The provider checks your customer's creditworthiness and verifies the invoice is genuine. Takes hours, not days.
Once approved, you receive the advance directly into your bank account — typically within 24-48 hours.
When your customer pays (either to you or the provider), you receive the remaining balance minus the agreed fee.
Single invoice finance goes by many names in the industry. They all mean essentially the same thing:
Spot Factoring
Most common term
Selective Invoice Finance
Industry terminology
Invoice Trading
Platform-based term
Invoice Auction
Marketplace model
Ad-hoc Factoring
Occasional use
Spot factoring isn't for everyone — it costs more per invoice than traditional facilities. But in certain situations, the flexibility is worth the premium.
You've won a contract significantly larger than usual. Fund that specific invoice to cover materials, labour, and other costs without affecting your regular cash flow.
Example: A £150k order when you usually do £30k/month
Your business has natural peaks and troughs. Use spot factoring to bridge quiet periods without committing to year-round facilities.
Example: Retailers funding Christmas stock in August
A major customer has negotiated 90-day payment terms but you need funds sooner. Fund just their invoices while other customers pay normally.
Example: Supplier to supermarkets with 90-day terms
An unexpected opportunity requires immediate capital. Fund an existing invoice to seize it without arranging a whole new facility.
Example: Equipment purchase or new premises deposit
You work on specific projects with large invoices at completion. Fund project invoices individually rather than maintaining ongoing facilities.
Example: Consultants with quarterly milestone payments
You're curious about invoice finance but don't want to commit. Try it with a single invoice to see how it works before deciding on a facility.
Example: First-time users of invoice finance
The key trade-off is flexibility vs cost. Spot factoring is more expensive per invoice but offers total freedom. Here's how they compare.
| Feature | Single Invoice | Whole Turnover |
|---|---|---|
| Contract term | None | 12-24 months |
| Minimum commitment | One invoice | % of turnover |
| Typical cost | 2-5% per invoice | 1-2% per invoice |
| Advance rate | 70-85% | 85-95% |
| Setup time | 24-48 hours | 2-4 weeks |
| Credit control | Usually not included | Often included |
| Exit flexibility | Use once and stop | Notice period required |
| Best for | Occasional/large invoices | Ongoing cash flow |
| Break-even point | < 5-10 invoices/month | > 5-10 invoices/month |
Spot factoring costs more than whole turnover facilities — you're paying for flexibility. Costs vary significantly based on invoice size, customer creditworthiness, and provider.
Typically 3-5% of invoice value. Higher percentage due to fixed admin costs. A £10,000 invoice might cost £300-£500.
Typically 2-3.5% of invoice value. The sweet spot for most spot factoring providers. A £50,000 invoice might cost £1,000-£1,750.
Typically 1.5-2.5% of invoice value. Larger invoices attract better rates. A £200,000 invoice might cost £3,000-£5,000.
Rule of thumb: If you're funding more than 5-10 invoices per month, a whole turnover facility will almost certainly be more cost-effective.
When customer pays after 45 days:
Compare to whole turnover: Same invoice would cost ~£750-£1,000 (1.5-2%) but you'd need an ongoing facility commitment.
Different providers specialise in different invoice sizes and business types. We'll match you with the right one for your needs.
Fast, tech-led providers with online applications and quick decisions. Best for speed and simplicity.
Best for: Invoices £1k-£100k
Established finance companies that offer spot factoring alongside their main facilities. Best for larger amounts.
Best for: Invoices £25k-£500k+
Platforms where institutional investors bid to fund your invoice. Can achieve competitive rates on good invoices.
Best for: Invoices £10k-£250k
Single invoice finance has much lighter requirements than whole turnover facilities. Here's what you'll typically need:
Everything you need to know about spot factoring and selective invoice finance.
Get quotes from specialist single invoice finance providers. No commitment, no obligation. Compare rates and find the best deal for your invoice.
Invoices from £1,000. No contracts. Quotes in minutes.