# Single Invoice Factoring Explained Source: https://www.cashbookfinance.co.uk/insights/single-invoice-factoring Last updated: 2026-10-26 Author: Bjorn Laku, Director & Chief Marketing Officer (https://www.bjornlaku.com/) Publisher: Cashbook Finance Limited > Understand single invoice factoring, also called selective or spot finance, including how one-off funding works, typical suitability, costs and limitations. Factoring FCA-registered UK lender FRN 782472 ## Single invoice factoring: fund one invoice, commit to nothing else Whole-ledger facilities aren't the only way to use [invoice finance](https://www.cashbookfinance.co.uk/invoice-finance). Single invoice factoring - also called selective or spot factoring - lets you fund one chosen invoice at a time, with no obligation to finance the rest. Written and reviewed by [Bjorn Laku](https://www.cashbookfinance.co.uk/bjorn-laku), Director & CMO. INV-2048 · Arden Health Group Illustration Cash received · this invoice A £50,000 invoice on 30-day terms - **Invoice value** £50,000 - **Paid to you, day 1–2** £45,000 - **When your customer pays** £4,000 Invoice value · £50,000 Illustrative: a 90% advance and a discount charge of about 2% of the invoice. Rates and advances vary by business, sector and customers. Check eligibility **£30m+** funded · **100+** UK businesses since 2019 · London SE1 - FCA **782472** - ICO **ZB545200** - Companies House **10723098** Worked example ### A single invoice on 60-day terms. A manufacturer funds one £35,000 invoice to a supermarket supplier on 60-day terms. No whole-ledger commitment: the cost begins and ends with this invoice. Check eligibility · Talk it through with a director | Invoice value, on 60-day terms | £35,000 | | --- | --- | | Advanced within 24–48 hours (90%) | £31,500 | | Discount charge, about 2% per 30 days, for 60 days | £1,400 | | Paid to you when your customer pays | £2,100 | | Total cost of funding this invoice | £1,400 (4% of the invoice) | | If your customer pays 30 days late | +£700 in charges | Illustrative: up to 90% advanced and a [discount charge](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-discount-charge) of about 2% of the invoice per 30 days. Rates, advances and any [service fee](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-service-fee) vary by business, sector and customers, and are confirmed in writing before you commit. **In this guide** - How it works - Why businesses like it - When a full facility is better Check eligibility · About 2–3 minutes, no credit search. ### How it works You pick a specific invoice - usually a large one from a creditworthy customer - and the funder advances most of its value, commonly up to 90%, within a day or two. When the customer pays, you receive the balance, less a fee. You decide when, and whether, to do it again. ### Why businesses like it - **No long-term tie-in** - use it as and when you need it, with no minimum-fee commitment on a whole ledger. - **Targeted cash** - release funds from one big invoice without restructuring your finances. - **Great for one-offs** - a large contract, a seasonal spike, or a sudden opportunity. - **A gentle first step** - a low-commitment way to try invoice finance before considering a full facility. ### When a full facility is better If you regularly need funding across many invoices, a whole-ledger facility usually works out more cost-effective and smoother to run. Selective funding shines for occasional, targeted needs. We'll help you judge which makes sense. Check eligibility · About 2–3 minutes, no credit search. ### Single invoice factoring: a practical decision test Single-invoice finance offers flexibility, but selective use can be expensive or unpredictable if it becomes a recurring habit. It works best for a clearly identified invoice and a defined use of proceeds, with no assumption that every future invoice will be accepted on the same terms. #### Commercial fit Choose invoices that are completed, undisputed and due from strong business customers. The product is less suitable where the whole ledger creates a permanent [working-capital need](https://www.cashbookfinance.co.uk/case-studies). #### Evidence and eligibility Provide the underlying contract, invoice and proof of delivery. Expect customer verification. A large invoice with unclear acceptance is not a strong candidate simply because of its value. #### Operational fit Plan the funding request before the cash deadline and understand how the customer will be notified. Selective transactions still require documentation and settlement administration. #### Alternatives Compare the repeated cost of individual transactions with a whole-ledger facility. Occasional use may justify flexibility; frequent use can make a revolving arrangement more efficient. Check eligibility · About 2–3 minutes, no credit search. ### Single invoice factoring: model the downside, not just the headline Calculate the exact net proceeds and final retained balance for the selected invoice. Include all transaction fees and the impact of payment later than expected. #### Where this can go wrong The risk is building commitments around a transaction that has not yet been approved. Keep a fallback plan until [eligibility](https://www.cashbookfinance.co.uk/eligibility), verification and funding are confirmed. ### Single invoice factoring: questions to ask before signing - Which invoices would be eligible, and what would reduce the available advance for using single-invoice finance selectively? - What is the all-in cost at expected utilisation, including minimums, reserves and exit terms? - Who owns customer communication, reporting, [reconciliations](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-reconciliation) and dispute escalation? - How does the facility behave if sales fall or the largest debtor pays late? ### Single invoice factoring: documents and controls to prepare Every invoice finance discussion goes better with the same core pack: a current [aged-debt report](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-aged-debt-report), representative contracts and invoices with delivery or acceptance evidence, recent management accounts with a short cash forecast, and an honest schedule of [credit notes](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-credit-note), bad debts and customer concentration. We keep one maintained resource covering the full pack, the questions that surface the all-in cost, and what to monitor once a facility is live - [read the invoice finance preparation checklist](https://www.cashbookfinance.co.uk/insights/invoice-finance-preparation-checklist). This guide is general information, not a recommendation or an offer of finance. Suitability, availability, pricing and terms depend on the business, the debtor ledger and the proposed structure. #### See what your invoices could release Tell us how your business invoices and a director will give you a straight, no-obligation view on fit - usually within a day or two. Factoring #### Selling accounts receivable Bjorn Laku Working capital #### 5 working-capital advantages Bjorn Laku Strategy #### Invoice finance at every stage Bjorn Laku ### Test whether one-off use will stay one-off Use the guide to organise the evidence and operating decision, not simply to compare product labels. #### Invoice selection Choose an undisputed debt with strong evidence and a credible debtor. #### Notification Understand how the debtor will be told and where payment must be made. #### Repeat behaviour If the same cash gap recurs, compare the [total cost](https://www.cashbookfinance.co.uk/pricing-decisions) with a revolving facility. ### More guides on invoice finance - [Asset-based lending vs invoice finance](https://www.cashbookfinance.co.uk/insights/asset-based-lending-vs-invoice-finance) - [How invoice finance fixes cash flow](https://www.cashbookfinance.co.uk/insights/invoice-finance-cash-flow) - [Why invoice finance applications are declined](https://www.cashbookfinance.co.uk/insights/why-invoice-finance-applications-are-declined) - [CHOCs: client handles own collections](https://www.cashbookfinance.co.uk/insights/chocs-client-handles-own-collections) - [Construction invoice finance: CIS and retentions](https://www.cashbookfinance.co.uk/insights/construction-invoice-finance-cis-retentions) - [Export invoice finance](https://www.cashbookfinance.co.uk/insights/export-invoice-finance) --- Cashbook Finance. Cashbook Finance Limited is registered with the Financial Conduct Authority under Firm Reference Number 782472. Company number 10723098. Registered office: Cumberland House, 24–28 Baxter Avenue, Southend-on-Sea, Essex SS2 6HZ. Registered with the Information Commissioner’s Office under reference ZB545200. All finance is subject to eligibility, satisfactory due diligence, credit approval and agreed terms. Invoice finance, trade finance and bridging finance may not be suitable for every business. The availability, structure, amount, pricing, fees, security requirements and completion timescales of any facility will depend on the applicant’s circumstances, the quality of the supporting evidence provided and our assessment of the proposed transaction. Any figures, examples, rates or timescales shown on this website are for illustrative purposes only and do not constitute an offer, commitment or guarantee of finance. Terms and conditions apply. Bridging finance is secured against property. Your property may be repossessed if you do not maintain repayments on a loan secured against it. Applicants should obtain independent legal, financial and tax advice where appropriate.