Spot Factoring, or single invoice factoring, is a flexible funding option where businesses sell individual invoices to a lender for immediate cash. Unlike traditional factoring, it requires no long-term contracts or commitments on multiple invoices, making it ideal for one-off or occasional funding needs.
Spot factoring is typically available to businesses with outstanding invoices. Lenders assess your business’s financial stability, the quality of your receivables, and your creditworthiness. No long-term commitment is needed, and you can choose specific invoices to factor.
The amount you can access through spot factoring depends on the value of the invoices you choose to factor. Typically, lenders will advance up to 85-90% of the invoice value, with the remaining percentage paid once the customer settles the invoice.
Once your invoices are approved, you can usually receive funding within 24–48 hours. The process is fast and straightforward, especially if you have a strong relationship with your customers and the invoices are clear and well-documented.
Spot factoring is used to improve cash flow by advancing funds based on outstanding invoices. It’s ideal for managing urgent financial needs like paying suppliers, covering payroll, or addressing short-term cash flow gaps without committing to long-term financing.
The costs of spot factoring typically include a service fee and interest, which can range from 1.5% to 5% of the invoice value, depending on the terms and risk involved. There may also be an additional fee for any invoice that is not paid within the agreed-upon period. Terms are generally short-term, aligned with the payment period of the invoices.
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A dedicated finance expert will get in touch to understand your needs and tailor options that work for your business.
We’ll match you with trusted lenders from our panel, offering competitive rates and flexible terms suited to your sector.
Review your finance offers with full transparency. We’ll guide you through the details so you can make a confident decision.
Once approved, your funds are released quickly — often within 24–48 hours — so you can get back to growing your business.
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Yes, spot factoring is particularly suitable for small and medium-sized businesses that need flexible cash flow solutions.
Unlike traditional invoice finance, approval for spot factoring often relies more on the creditworthiness of your client rather than your own business history or financial strength.
This makes it an ideal option for start-ups, growing businesses, or companies with limited trading history, as it allows you to access funds quickly without committing to a long-term invoice finance facility.
Spot factoring can help small businesses bridge payment gaps, manage cash flow, and fund operational needs effectively.
Yes, spot factoring allows you to select specific invoices to finance on an ad hoc basis. This flexibility lets your business access working capital when it’s needed most without tying all invoices into a long-term facility.
By choosing individual invoices, you maintain control over your accounts receivable management while benefiting from fast cash flow solutions.
This makes spot factoring ideal for businesses with irregular invoicing patterns or occasional large orders that require immediate funding.
Funds from spot factoring are typically available within 24 to 48 hours of the invoice being approved. The lender will conduct routine checks to validate the invoice and confirm your client’s creditworthiness, which ensures secure and reliable funding.
This rapid turnaround allows businesses to bridge cash flow gaps, pay suppliers, or invest in growth without waiting for client payment terms to be met, making spot factoring an effective tool for short-term working capital needs.
The outcome depends on whether you choose recourse or non-recourse factoring:
Choosing the right option allows you to manage risk while accessing immediate cash flow, and many businesses prefer non-recourse arrangements for high-value or international invoices.
Yes, most spot factoring providers set minimum and maximum invoice values, which vary depending on the lender and the type of business.
Minimums ensure that the cost of processing the invoice is justified, while maximums help lenders manage exposure and risk.
Before applying, it’s important to confirm your provider’s invoice value criteria to ensure your invoices qualify.
Spot factoring is generally best suited to businesses that issue invoices of moderate to high value and need flexible, short-term funding on a per-invoice basis.
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"Spot factoring provides businesses with flexibility by allowing them to sell individual invoices rather than committing to a long-term facility. This is ideal for one-off funding needs, giving businesses quick access to cash without tying up their entire sales ledger."
