What is Single Invoice Finance?
This type of finance comes under many different guises – Single Invoice Finance, Spot Factoring, Pay-as-you-use Finance, Selective Factoring, – depending on the lender offering it. Single Invoice Finance quite simply means funds are issued against an invoice and then the invoice payment is collected in when it becomes due for payment.
You Invoice – Funds Released – Payment chased – Invoice Paid – Balance released
Single Invoice Finance is an alternative way of releasing the cash against unpaid invoices, to free up the cash flow for the business instead of having to wait for 30,60,90 days for the payment to come in. Releasing funds early gives better flexibility to the business cash flow, allowing for the cash to be utilised for other business needs such as purchasing stock, paying the wages. Another benefit to this type of finance is that professional credit control is included in the fee – so the invoice will be chased as soon as it becomes due and until payment is received.
The key plus point with this type of funding is its flexibility. There is no tie in to a contract, no long term commitment, no ongoing fees. Single Invoice Finance is available to use on an ‘only when needed’ basis – for larger one off invoices and contracts – releasing the funds for better business cash flow without any unnecessary charges.