Single Invoice Finance
Single invoice finance, commonly referred to as spot factoring, is for businesses facing an unusual cash crunch. Often the business has just completed a large contract or filled a big sales order. The business needs immediate cash to cover the costs associated with the order. They can't wait 30 to 60 days for the cash to be collected from the customer receivable.
Single invoice factoring is common in the construction industry. Often, it's accompanied by purchase order financing. Spot factoring usually costs more than normal factoring arrangements because the factoring company must recoup the cost of due diligence and underwriting services.
Many factoring companies don't offer single invoice financing because of the high cost and greater risk involved. Those that do provide this service justify it because of the larger fee or in hopes that it leads to a long-term factoring relationship in the future.