Single invoice finance and factoring
What is single invoice finance?
Rather than having to sell your entire debtor book, one option is to selectively sell single invoices, or engage in “spot factoring”. Unlike full factoring, this process is confidential and non-disclosed (although this itself is at your discretion). The advantage of this is, unlike traditional financing options, one is not obliged to pay fees on an ongoing basis where financing is not outstanding.
Advantages of using Single Invoice Factoring
- Flexibility – Capital can be raised quickly from single invoices. The facility can be used time and time again whenever the need arises to raise working capital.
- No long-term commitment – There’s no need to lock-in the whole sales ledger to an annual agreement like a traditional factoring or invoice discounting agreement. Once an invoice is settled the facility remains available on an invoice-by-invoice basis.
- Transparent charging – There is a single fixed charge for each invoice, levied on the amount advanced. This type of invoice finance does not attract any monthly minimum payments or enduring charges.
- Quick access to capital – Selective invoice finance is a simple process that allows businesses immediate access to funds when they’re needed most.
- Credit management and customer relationships – Selective invoice finance recognises the importance of the relationship between a client and their customers by enabling a client to use their own credit management processes.