Can I Finance Just One Invoice?
Yes - this is called selective or spot factoring. You choose which individual invoices to finance without committing to a whole-turnover facility. It usually costs more per invoice than a whole-ledger facility, but there is no commitment to fund the rest of your invoices. Invoice size limits vary: Triver, for example, funds invoices from £100 to £100,000, with fees from 0.06% a day.
Why This Matters
Most UK invoice finance facilities ask you to put most or all of your sales ledger through them, usually on a contract with a notice period. If you have one large invoice from a creditworthy customer creating a cash gap, or only need funding now and then, selective invoice finance (also called spot factoring or single invoice discounting) funds just the invoices you choose, and you keep chasing your other customers yourself.
Key Points
- Selective invoice finance lets you submit individual invoices for funding without putting your whole ledger through a facility.
- Fees per invoice are usually higher than on a whole-ledger facility, and the structure varies: Triver charges from 0.06% a day (about 1.8% on a 30-day invoice), Hydr a flat fee per invoice (see each provider's profile for the source).
- Invoice size limits vary by provider; Triver funds invoices from £100 to £100,000.
- How much is advanced varies too: Hydr and Sonovate publish up to 100% of the invoice.
- Your customer is credit-checked for each invoice, so approval is not automatic even if you have used the service before, and the first invoice takes longest.
- There is no commitment to fund other invoices, but check whether a provider caps how often you can use it.
- It suits project-based businesses, firms testing invoice finance, or established firms with a one-off cash gap rather than a constant shortfall.
Illustrative example
Hypothetical: a Birmingham-based design consultancy invoices a large national retailer £45,000 for a six-month branding project, payable in 60 days. The consultancy needs to pay two freelancers £18,000 within two weeks but has no cash reserves.
They submit the single invoice to a selective invoice finance provider. After approving the retailer's credit, the provider advances £36,000 (80%), charging an assumed flat fee of 2.5% of the invoice (£1,125). The consultancy pays freelancers on time, and when the retailer settles in 58 days, the provider releases the remaining £7,875 (£9,000 reserve minus £1,125 fee). Total cost: £1,125 for 58 days' access to £36,000, no ongoing commitment.
Common Pitfalls
- Assuming you can repeatedly finance invoices from the same debtor at spot rates. Some providers limit how many invoices you can fund selectively each year, after which they may push you towards a whole-turnover facility.
- Underestimating turnaround time. Each invoice requires fresh credit assessment of the debtor, which can take several days, so it is not a quick fix for a genuine emergency unless the customer has already been approved.
- Ignoring debtor notification. Some selective providers operate on a disclosed basis, meaning your customer receives notification that their invoice has been financed, which can raise questions about your financial stability.
- Treating selective finance as a substitute for structural working capital. If you need funding every month, a whole-ledger facility usually costs less per invoice, despite the contract.
What to Do Next
- Identify the specific invoice(s) creating your cash gap. Note the debtor name, invoice value, payment terms, and when you need funds, then check if the debtor is a limited company (sole traders and partnerships are often excluded).
- Approach providers that offer genuine selective (single invoice) facilities. Request a quote showing advance rate, flat fee percentage, and turnaround time from submission to funds in your account.
- Compare the all-in cost against a short-term business loan or overdraft. If you borrow £30,000 for 45 days and the fee is £840 (2.8%), that is about 23% a year (2.8% × 365 ÷ 45), so make sure you are paying for flexibility you need rather than for a lack of alternatives.
Related Questions
What's the difference between selective invoice finance and spot factoring?
The terms are functionally identical in the UK market. Both describe single-invoice funding without whole-ledger assignment. Some providers use 'selective invoice discounting' to imply confidential (undisclosed) arrangements, while 'spot factoring' sometimes suggests disclosed notification to the debtor, but usage varies by provider and neither term has a formal regulatory definition.
Can I use selective invoice finance if I already have a business overdraft?
Yes, unless your overdraft agreement contains a negative pledge prohibiting you from assigning receivables without the bank's consent. Most high-street overdrafts allow selective invoice finance because you're not assigning your entire ledger. However, tell your bank if the invoice is from a major customer, to avoid breaching your overdraft terms.
Do I need a minimum trading history to access selective invoice finance?
Requirements vary widely: some selective providers accept young businesses with one strong customer invoice, while others want filed accounts. The key criterion is debtor creditworthiness rather than your trading history. A three-month-old consultancy can finance an invoice from Unilever more easily than a five-year-old business invoicing a newly formed startup, because the risk sits with the debtor's ability to pay.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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