Last updated: 20 Aug 2026

Spot factoring

Spot factoring lets you finance a single invoice as a one off transaction, releasing up to 90% of its value, with no ongoing contract or long term commitment.

  • See what you could raise against a single invoice

  • Get an advance of up to 90% of invoice value

  • Finance one invoice, without committing your whole sales ledger

  • A dedicated funding specialist manages your application, start to finish

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What is spot factoring?

Spot factoring is a type of invoice factoring that lets you finance a single invoice as a one off transaction, rather than committing your whole sales ledger to an ongoing facility. A lender advances most of that invoice's value upfront, usually up to 90%, then collects payment directly from your customer before releasing the remaining balance, minus their fee, once it's paid in full. Because there's no ongoing contract, spot factoring suits a genuinely one off cash flow gap, such as an unusually large order or a single slow paying customer, rather than a recurring need to finance invoices.

Why get spot factoring with Capitalise?

  • Fund one invoice, no ongoing contract

    Finance a single invoice without signing up to an ongoing facility or committing any of your other invoices.

  • Credit control handled for you

    Your lender collects payment directly from your customer on that invoice, so there's nothing for your team to chase.

  • Funding in as little as 48 hours

    Once your invoice is approved, funds usually reach your account within 48 hours, so a single unpaid invoice doesn't hold up your cash flow.

How does spot factoring work?

Spot factoring follows the same steps each time you arrange a one off facility.

  1. You raise the invoice you want to finance. Your business supplies the goods or service as normal and sends the invoice to your customer.

  2. You submit that single invoice to a lender. This is arranged as a standalone transaction, rather than your whole sales ledger.

  3. Your lender advances you a percentage of the invoice value. This is typically up to 90%, usually reaching your account within 24 to 48 hours of approval.

  4. Your lender collects payment directly from your customer. Spot factoring is always disclosed, so your customer knows a lender is involved and pays them rather than you.

  5. Your lender releases the remaining balance, minus their fee. Once the invoice is settled in full, the transaction is complete, with no facility left running and nothing further to pay unless you arrange spot factoring again for a different invoice.

How much does spot factoring cost?

The cost of spot factoring depends on the invoice's value, how long it's outstanding and your customer's payment history. The table below shows what to expect across the Capitalise lender panel.

Cost element

Typical range

Advance rate

Up to 90% of invoice value upfront, though some lenders advance as little as 70% to 85% on a one off invoice

Per invoice fee

Around 1% to 5% of the invoice value, higher than a whole ledger factoring facility since you're financing a single invoice as a one off

For example, on a £20,000 invoice you might receive up to £18,000 within 24 to 48 hours, with the remaining balance paid once your customer settles, minus a fee of somewhere between £200 and £1,000 depending on the invoice and lender.

Spot factoring typically costs more per invoice than whole turnover factoring or discounting, since a lender is pricing in the flexibility of a one off transaction rather than spreading their risk across an ongoing relationship and many invoices. A stronger business credit score and a customer with a reliable payment history usually bring your fee down. Most lenders also set a minimum invoice value for spot factoring, since arranging a one off facility isn't cost effective for very small amounts, so check this with your funding specialist before applying.

Am I eligible for spot factoring?

Most lenders on the Capitalise panel assess your business against the following:

  • Your business trades B2B, invoicing other businesses rather than consumers

  • The invoice you want to finance is owed by another UK business on payment terms of 30 to 90 days

  • You're comfortable with your lender collecting payment directly from your customer, since spot factoring is always disclosed

  • The customer named on the invoice shows a reasonably healthy credit history

What documents do you need to apply for spot factoring?

Having these ready will speed up your application:

  • The invoice you want to finance, along with proof of the goods or service it relates to

  • 6 months of business bank statements

  • Your latest set of filed annual accounts, if available

  • Details of the customer on the invoice, including how long you have worked with them

  • Proof of ID for each business director

How do I apply for spot factoring with Capitalise?

  • Green circle with a white number "1" in the center.

    Tell us about your business and the invoice you want to finance

    We'll ask about the invoice value, your customer and when it's due.

  • Green circle with white number "2" in the center.

    Get matched with lenders

    Your application is matched against spot factoring lenders from our panel of lenders who fit your business profile.

  • Green circle with the white number 3 in the center.

    Speak to a funding specialist

    A dedicated funding specialist talks you through whether a one off facility or an ongoing arrangement suits your invoice better.

  • White number 4 on a solid green oval background.

    Lenders review your application

    Your funding specialist sends your application to multiple matched lenders, who assess your invoice and customer before making an offer.

  • White number 5 centered on a green circular background.

    Accept an offer and draw down funds

    Once approved, your advance can reach your account within 48 hours.

What are the advantages and disadvantages of spot factoring?

Advantages

Disadvantages

You finance one invoice and the transaction is complete, with nothing further to pay or maintain afterwards.

The per invoice fee is often higher than the combined service charge and discount rate on a whole turnover facility.

You get most of the invoice's value upfront instead of waiting 30, 60 or 90 days for your customer to pay.

Spot factoring is always disclosed, so staying unnamed to your customer isn't an option.

Your lender takes on chasing payment for that invoice, so your team doesn't need to.

Each invoice is its own transaction, so it won't build into an ongoing facility.

The invoice itself secures the funding, so often you don't need to put up other business or personal assets.

A very small invoice may not be cost effective for a lender to fund as a one off.

Which businesses use spot factoring?

  • Businesses with one unusually large order or invoice

    Finance a single large invoice tied up in a longer payment cycle, without financing every other invoice you raise at the same time.

  • Businesses trialling invoice finance for the first time

    Test how invoice finance works against one invoice before deciding whether an ongoing facility suits your business.

  • Businesses with a single slow paying customer

    Finance the one invoice held up by a customer's longer payment terms, leaving faster paying customers unaffected.

  • Project based businesses between contracts

    Bridge a gap tied to one specific invoice, without maintaining a facility across quieter periods when there's nothing to finance.

Spot factoring vs selective invoice finance: what's the difference?

The main difference between spot factoring and selective invoice finance is who collects payment from your customer, rather than how many invoices are involved. Spot factoring is a disclosed factoring arrangement by definition, so your lender always collects payment directly and your customer always knows. Selective invoice finance can be arranged the same way, or confidentially, so you keep collecting payment yourself and your customer is never told.

Feature

Spot factoring

Selective invoice finance

Who collects payment

Your lender, since it's always a disclosed factoring arrangement

Either you, confidentially, or your lender, disclosed, depending on the facility

Confidential option

Not available, your customer is always told

Available with some lenders

Number of invoices

Limited to the one invoice the facility was arranged for

Can cover an ongoing selection of invoices or customers over time

Best suited to

Businesses that want a lender to take on collecting a single invoice as a one off

Businesses that want to choose which invoices to fund, with the option to keep collections in house

Terminology varies across the market, and some lenders use "spot factoring," "single invoice finance" and "selective invoice finance" fairly interchangeably, so it's worth confirming exactly how a specific offer is structured with your funding specialist.

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