Invoice finance — can you fund individual invoices (selective / spot)?

Short answer: Yes. Selective (also called spot) invoice finance is widely available in the UK and lets businesses raise cash against a single invoice or a small number of invoices rather than placing your entire ledger on funding. It’s useful for one-off projects, unexpected large invoices or when you need short-term working capital quickly. UK Business Loans is an introducer (we do not lend); complete a Free Eligibility Check and we’ll match you with specialist lenders and brokers for no‑obligation quotes.

Quick answer — yes, and how selective funding works

Selective (spot) invoice finance allows you to choose individual invoices to fund rather than committing your whole sales ledger. A lender or spot factoring provider will assess the invoice and the debtor’s credit, advance a percentage of its value and charge a fee until the invoice is paid. This is a flexible, short-term way to unlock cash for specific needs — for example, to pay suppliers, buy materials for a job or smooth a single large gap in cashflow. It’s typically arranged on an ad hoc basis and can often be completed within 24–72 hours once approved.

Get Quote Now — our short enquiry takes around 90 seconds and is free. We are an introducer and will connect you to lenders or brokers that specialise in spot funding.

What is invoice finance?

Invoice finance is a category of business funding that turns unpaid customer invoices into immediate cash. Two common forms are factoring (where the funder may take responsibility for collections) and invoice discounting (where you retain collections). All invoice finance options provide faster access to cash tied up in invoices so you can pay staff, buy stock or invest in growth without waiting for customer payment.

Common benefits include improved cashflow, faster access to working capital, and reduced reliance on overdrafts or credit cards. If you want to understand the broader options and terminology, read more on our invoice finance resources or speak to a specialist via our Free Eligibility Check.

What is selective / spot invoice finance?

Selective (sometimes called spot or single-invoice) finance is a form of invoice funding where you nominate one or a small number of invoices to be funded. It differs from whole-ledger arrangements where most or all of your invoices are included in an ongoing facility.

How a spot deal typically works:

• You submit a nominated invoice (or invoices) and supporting paperwork to a specialist spot funder or broker.
• The funder checks the invoice, confirms the debtor’s credit or pays history, and agrees an advance rate.
• On approval the funder advances a percentage of the invoice (commonly 70–90%).
• When the debtor pays, the funder returns the balance minus fees, or applies agreed charges.

Spot providers include dedicated spot factoring houses, some specialist banks with ad-hoc facilities, and brokers who can shop the invoice around multiple lenders for the best price. Spot funding is ideal if you only need cash for a one-off invoice, or want to test invoice finance without committing your ledger.

Selective vs whole-ledger: pros & cons

• Pros of selective/spot:
  • Flexibility — fund only the invoices you need.
  • No long-term ledger commitment.
  • Lower ongoing administration and no monthly minimums in many cases.
• Cons of selective/spot:
  • Higher per-invoice fees versus whole-ledger (less economy of scale).
  • Limits on the size or age of invoices accepted.
  • Potential buyer sensitivity where collections are managed by a third party.

What this means for you: choose selective funding when you have occasional large invoices or temporary cash needs; choose whole-ledger when invoice funding will be a steady, ongoing part of your working capital strategy.

Who is spot invoice finance best for?

Spot invoice finance suits businesses that: operate on project work, receive occasional large invoices, or need short-term cash tied to a single contract. Typical sectors include construction sub-contractors, manufacturers fulfilling a single large order, logistics firms waiting on a key debtor’s payment, and businesses with seasonal spikes.

Spot funders prefer invoices owed by creditworthy businesses. If your customer has weak credit or the invoice is disputed, availability and pricing will be affected.

Costs & common terms for spot / selective funding

Costs vary by provider and depend on invoice size, debtor credit quality, invoice age and whether the arrangement is recourse or non-recourse. Typical elements are:

• Advance rate: 70–90% of the invoice value on funding.
• Fee / discount: charged as a percentage of the invoice (sometimes per week) — spot fees are generally higher than whole-ledger rates.
• Setup or admin fee: one-off charge for processing.
• Collection fee: if the funder handles collections.
• Time to funds: often 24–72 hours after approval.
• Recourse vs non-recourse: recourse means you remain liable if the debtor fails to pay; non-recourse shifts bad-debt risk to the funder but costs more.

Example illustration: on a £50,000 invoice funded with a 85% advance (that’s £42,500) and a 2% fee on the invoice for 30 days (£1,000), you’d receive £41,500 on day one (advance less fee) and the balance when the debtor pays (subject to the funder’s holdback and any other costs).

Exact costs depend on the lender — use our Free Eligibility Check to get tailored quotes from specialists.

Eligibility & information lenders will want

To assess a spot invoice you’ll typically need to provide:

• Copy of the invoice and confirmed delivery/performance evidence.
• Debtor name and contact details; proof of the debtor’s identity and trading status.
• Invoice age (younger invoices are easier to fund).
• Basic company details: registration, turnover band, bank account details.
• Historic payment performance with that debtor (if available).

Weak debtor credit, long-standing disputes or overdue invoices reduce options or increase fees. Providers often favour invoices due within standard trading terms (30–90 days) and owed by limited companies or large corporates.

How UK Business Loans helps — step-by-step

We don’t lend — we connect you to lenders and brokers who specialise in selective invoice funding. Here’s how our process works:

1. Complete our short enquiry: business name, invoice amount, debtor name, invoice age, turnover band and contact details (takes about 90 seconds).
2. We match you: your enquiry is sent to selected specialist lenders and brokers who fund single invoices or offer spot factoring.
3. Receive offers: matched partners contact you quickly with indicative pricing and document checklists.
4. Choose and fund: accept a suitable offer, the lender completes checks and advances funds against the invoice.

Here’s how quickly it can happen: submit — get matched — receive offers — get funded. Start now with a Free Eligibility Check.

Risks, regulation & compliance

Important points to consider before using spot invoice finance:

• UK Business Loans is an introducer — we do not lend money or provide regulated financial advice. We connect you with lenders/brokers who may contact you directly following your enquiry.
• Spot funding usually costs more per invoice than whole-ledger solutions — check all fees and repayment terms before agreeing.
• Third-party collection activity can affect customer relationships; clarify whether the funder will notify the debtor.
• Some facilities may require security or personal guarantees depending on the size and risk profile; discuss these terms with the lender.

We encourage transparent discussions with potential funders and recommend you read any terms carefully. If in doubt, ask the lender or broker for clear written explanations of fees, recourse, and notification practices before proceeding.

Frequently asked questions

Can I fund a single invoice?

Yes. Single‑invoice or spot finance is specifically designed for that. Availability will depend on the invoice size, debtor credit and whether the invoice is undisputed.

How fast can I get cash from a spot invoice?

Many spot providers can advance funds within 24–72 hours after approval, though the timeline depends on document completeness and debtor verification.

Will my customers know you’ve funded the invoice?

It depends. Some funders operate disclosed factoring (the debtor is notified and pays the funder), while others may offer non‑notified options. Most spot factoring is disclosed; ask the lender what notification approach they use.

Does spot funding affect my credit or customer relationships?

Spot funding doesn’t usually affect your business credit rating directly, but using a third-party collector can change the buyer experience. It’s important to discuss collection practices with the funder first.

Is spot invoice finance expensive?

Spot funding generally has higher fees per invoice compared with whole-ledger facilities because the funder cannot spread fixed costs over multiple invoices. However, it can still be cost-effective for short-term or one-off needs.

What minimum funding amounts are typical?

Many spot funders work with invoices from around £10,000 upwards. UK Business Loans typically helps businesses seeking £10k and above — complete our Free Eligibility Check to see which partners can help.

Summary & next steps

Selective (spot) invoice finance is a practical, widely available way to fund individual invoices in the UK. It’s flexible and fast, best suited for occasional large invoices or short-term cash needs. UK Business Loans acts as an introducer — we don’t lend — but we can quickly match your enquiry to specialist lenders and brokers for free, no-obligation quotes.

Get Quote Now — free eligibility check (about 90 seconds). By completing the form we’ll identify the best providers for your invoice and connect you directly with relevant lenders or brokers.

Disclaimer: UK Business Loans is an introducer and does not lend or provide regulated financial advice. Completing our enquiry is free and does not affect your credit score. All funding decisions, terms and regulatory status are made by the lender or broker you choose to work with.

invoice finance

1. What is selective (spot) invoice finance and how does it work?
– Selective or spot invoice finance lets you fund one or a few specific invoices by submitting them to a specialist who advances a percentage (typically 70–90%) and charges a fee until the invoice is paid.

2. Can I fund a single invoice with UK invoice finance providers?
– Yes — many UK spot funders will finance individual invoices provided the debtor is creditworthy, the invoice is undisputed and it meets the provider’s minimum size and age requirements.

3. How quickly can I get cash from spot invoice funding?
– Most spot providers can advance funds within 24–72 hours of approval, subject to document checks and debtor verification.

4. How much does selective invoice finance cost?
– Spot invoice finance usually has higher per-invoice fees than whole-ledger facilities, with costs depending on invoice size, debtor credit, invoice age and whether the deal is recourse or non‑recourse.

5. What minimum invoice size do spot funders typically accept?
– Many spot funders prefer invoices from around £10,000 and above, though exact minimums vary by provider and sector.

6. Will my customer be notified if I use spot factoring?
– It depends on the arrangement — some spot facilities are disclosed (debtor notified) while others may offer non‑notified options, so check the lender’s collection and notification policy.

7. What documents and information do lenders need for a spot invoice?
– Lenders commonly request the invoice, proof of delivery/performance, debtor details and trading status, company registration and basic financial or turnover information.

8. Is spot invoice finance suitable for my business or should I choose whole-ledger funding?
– Choose spot funding for occasional large invoices or short-term cash needs, and whole‑ledger funding if invoice finance will be an ongoing, regular part of your working-capital strategy.

9. Will submitting an enquiry through UK Business Loans affect my credit score?
– No — completing UK Business Loans’ free eligibility enquiry is not an application and does not affect your credit score, though lenders may run checks if you proceed.

10. Does UK Business Loans provide the funding directly or charge for matching me with lenders?
– No — UK Business Loans is an introducer that connects you free of charge to FCA-regulated lenders and brokers who provide funding and set their own terms.