Spot Factoring UK 2026: Selective Single-Invoice Finance

Spot factoring (also called selective invoice finance or single invoice finance) is per-invoice funding with no commitment to put further invoices through the facility. You pick which invoices to fund, the provider advances 70-90% of the invoice value within 24 hours, and you repay when the customer pays. Per-invoice fees are typically 1.5-4% of invoice value, paid only on invoices you actually fund. No contract, no minimum, no whole-book commitment.

Hydr is the strongest pure-play spot factoring provider for general UK businesses (digital-first, single invoices from any sector). Triver leads for businesses already using Xero or QuickBooks (embedded directly into accounting software). Sonovate is the standout for recruitment agencies (per-contractor invoicing with integrated payroll). Kriya (formerly MarketInvoice, now part of Allica Bank) is strong for general SMEs needing selective.

Typical UK spot factoring fees are 1.5-4% of invoice value per invoice funded. The fee covers both service and discount charge in one (rather than the split-fee structure of whole-book facilities). For a £20,000 invoice with 60-day terms funded at 2.5%, total cost is £500. Cheaper per-invoice options exist (Sonovate from 0.9% for recruitment, Hydr from 1.5%) but most providers cluster at 2-3%.

Spot factoring suits irregular cash flow needs, growing businesses uncertain about long-term funding requirements, businesses with one or two large invoices to fund (rather than the whole ledger), seasonal businesses, project-based services, and businesses below the typical whole-book turnover threshold. The economics tip in favour of whole-book once you're regularly funding 30%+ of your ledger or putting £100,000+ per quarter through selective.

Yes. Many UK businesses start on spot factoring to test the product, then upgrade to whole-book once their working capital need is sustained and predictable. Switching providers usually involves a parallel-running period. Some providers (Close Brothers, Bibby) will buy out an existing spot factoring facility to streamline transition to their whole-book product.

Usually not on selective spot factoring up to about £50,000 advance per invoice. Hydr, Triver and Sonovate typically don't require personal guarantees because the funder takes risk on the specific invoice rather than the business overall. For larger spot facilities or repeated use across multiple invoices, providers may request a small PG to cover total exposure.