For Businesses
Technology
Turning lengthy unpaid invoices into cash
Estimated time to read page: 2min 25s | Written - January 2025. Reviewed quarterly.
"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." - Jamie Davies, Head of Lending
Spot Factoring, also known as single invoice factoring, is a financing solution where businesses sell individual invoices to a lender for immediate cash.
Unlike traditional factoring, it doesn’t require long-term commitments or agreements on multiple invoices.
A flexible, one-off financing solution tailored to your needs. Tailored to the specific debtor you may struggle with.
The industries that typically apply for asset finance are:
Spot Factoring provides quick cash flow relief, enabling businesses to address urgent financial needs on specific debtors rather than requiring to cover a whole book. It unlocks cash to cover operational expenses, or seize growth opportunities without waiting for clients to pay their invoices.
The specific eligibility criteria will depend on each lender, the rule of thumb usually involve:
Client has to present a strong financial profile, as the risk is assessed by their creditworthiness
Invoices must be due and undisputed
Business issuing invoices to other busiesses (B2B)
Some lenders might require a minimum invoice value.
To check if the debtor is eligible for a Spot facility, initially it'll be required the client's company name, address, and invoice size.
By joining years of expertise with our in-house intelligent lending technology, we are able to quickly match your business to the best product and the right lender for your circumstances, even if you have struggled in the past, in a simple and straightforward way.
On top of that, we provide advice and support through the entire process. Arranging a finance facility can take time. We assist you in cutting through the unnecessary and focusing only on what needs to be done.
We make it easier for you to raise commercial finance for your project or business. As we're not tied to specific commercial finance lenders, our concern is what's best for you.
Yes, especially as approval relies more on the client's financial strength than the borrower.
Yes, spot factoring allows you to select specific invoices to finance.
Funds are typically available within 24-48 hours of the invoice's approval - lender will run checks to confirm the invoice raised.
In recourse factoring, you’ll need to repay the advance, while in non-recourse factoring, the lender assumes the risk.
Yes, most lenders have minimum and maximum invoice value criteria, which vary depending on the provider.
