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Factoring Information

Single Invoice Discounting Or Spot Invoice Finance

You might want the benefits of invoice factoring or invoice discounting but feel you don't have an on-going requirement.  Yet there could be a time when you have a short term cash flow problem, perhaps you simply have one or two invoices or one or two clients where having prompt payment of the invoices would dramatically help your cash flow.

Single Invoice Factoring, or single debtor finance, can offer a straight forward option of competitively priced, short term invoice based finance. Generally single invoice finance has a fixed level of fee for the required transaction.  The benefits are the same as other invoice finance solutions, i.e cash within 24-48 hours.

However not all Invoice Finance companies offer a single invoice finance facility.

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Single Invoice Discounting or Spot Factoring Explained

Spot factoring, also known as single invoice finance, selective invoice discounting or single debtor finance, is a new cash flow tool that allows a business to free-up cash that would be tied awaiting customer payment on a one by one invoice specific basis, without having to enter into a long term agreement with a finance company or factor.

As single invoice finance provides short-term business funding the terms for doing so are usually more flexible than traditional invoice finance services.

Single Invoice Finance - The Benefits

The benefits of utilising single invoice finance can be considerable.  The selective nature of the service means that business can release cash from one or a few invoices at a time and the available facility can be used as a when required or not at all.

There's no obligation to enter into a long-term agreement and you won't have to tie up the whole of your sales ledger.  Once your invoice has been paid by your customer there are no further requirements or commitments until you decide to use the facility again.  The facility will remain open once you've established it but the costs are per transaction or invoice.

The fees charged for the spot factoring service are usually transparent; one invoice generating one charge with no minimum fees or monthly costs.  The business simply pays for funds required as and when they require them.

However as with other forms of invoice finance you still have the benefit of fast availability of funds when you need them.

With spot factoring you can maintain the relationship with your customer and the responsibility for collection of the debt and if you don't have the credit collection procedures in place you can often still get assistance and support from the invoice finance company.

As single invoice finance can be used when and where required or not at all, the companies that provide it generally offer a high level of customer service as it is this element which makes you want to use the solution regularly.  Consequently the spot finance companies can only build repeat business by providing excellent service.

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Further Invoice Finance Information:

Single Invoice Factoring

Factoring Misconceptions

Invoice Factoring - Reasons to use it for your business

Factoring - A Buyers Guide

 

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