Single Invoice Finance: Helping you get large invoices paid faster
A big order can become a problem - unless you have funding that lets you get paid as fast as you work
Current Terms Available
- Funds advanced as you issue large invoices
- 90% of invoice value immediately
- Funds in your bank with 24 hours
- Balance when client pays
Versatile B2B solution
- Ideal for B2B deals
- Reduce financial risk
- Ideal for supporting growth
- Improved cashflow
- Supports growth
- Helps SMEs work with large corporations
- Supports high value orders
- No impact on other credit arrangements
There are many types of Invoice Finance, designed to help your business expand, grow and solve cashflow challenges – by helping you get paid faster.
They all allow businesses to get advances on the cash they are due from customers, without having to wait for those customers to pay. Instead of waiting 30 or 60 days, or even longer with large corporate customers, it can let you get the funding you need as soon as the work is done.
Some Invoice Finance solutions mean that you use all your invoices to raise cash. Single Invoice Finance provides an alternative approach - and lets you decide which invoices you use to raise the funds you need.
What is Single Invoice Finance?
Traditional Invoice Finance facilities provide funding against the entire sales ledger. Single Invoice Finance, also known as Spot Invoice Finance, allows you to release cash from individual invoices.
It is a form of finance that leaves you in control and lets you raise funds as you need them.
It allows you to raise up to 90% of the selected invoice’s value within 24 hours, providing you with a fast and effective way to access funding. It could be particularly suitable if your business has no long-term funding requirement, but may be faced with customers with high-value orders and long credit terms, which could leave you with a temporary cash flow shortfall.
How Single Invoice Financing works
Single Invoice Finance provides cash advances, with your invoices as the security, for the lending company to use as the basis for advancing you the money. They can release 75-90% (depending on your arrangement) of the invoice value immediately, with the remainder, less their costs to be released when your customer pays. With a Single Invoice Finance arrangement, you determine which invoices you wish to use as the basis for a cash advance. This lets you use the facility strategically to meet your business needs.
You can select invoices from clients you know will take a long time to pay. By getting payment immediately, you can improve your cashflow.
You can select only those invoices above a certain value, giving you increased working capital.
You can increase the numbers of invoices you select for financing, allowing you to increase funds available for growth or other specific expenses.
Being able to only select those invoices you wish to gain funding against can enable you to control cashflow, without embarking upon a longer-term contract.
The finance company earns money both from the interest rate it charges on the loan and from a monthly fee to maintain the arrangement. The amount of interest that it charges the borrower is based on the amount of funds loaned.
Benefits of Single Invoice Finance
Single Invoice Finance can reduce the financial risks your business faces. Because all cash advanced is secured on invoices you have already issued, it avoids the danger that you will fall behind with loan repayments which is always present with traditional commercial finance. It means:
- Improved cash flow with fast access to the cash you have already earned, but which is tied up in unpaid invoices - you no longer have to wait 90 days or more to get paid
- Versatile - provides a source of cash you can use as you need it
- Flexible - you won’t be committed to any funding facility or contract
- Ideal for high-value invoices or customers with long payment terms
- Funding is based on your customers’ creditworthiness – not yours
- Get 90% of invoice value as soon as you bill your customers
- Cleared funds can be in your account the day after you invoice
- Ideal for high-profit businesses that are growing and need the cash flow to fund additional growth
- Provides capital for your business, without having to sacrifice equity
Selective Invoice Discounting and Spot Factoring
Selective Invoice Discounting and Spot Factoring are both types of Single Invoice Finance, and work in a similar way. Both allow your business to assign individual invoices to a lender and receives a percentage of the funds without waiting for the end customer to pay.
Invoice Discounting lets you keep control of your sales ledger and your client relationships, while Spot Factoring will allow the lender to take control of ensuring the invoice is paid.
Is Single Invoice Finance right for your business?
Single Invoice Discounting can be effective for companies with relatively high profit margins, since they can readily absorb the higher interest charges associated with this form of financing. It can, therefore, be ideal if you have an annual turnover above £500,000 and an established credit control system in place.
Great for high-value invoices or those with long payment terms that you would not necessarily have the ability to fulfil without instant access to the cash.
Unlike bank overdrafts and traditional forms of lending, Invoice discounting is a flexible facility that grows with your business. It enables you to quickly inject capital, without having to deal with banks or sacrifice equity.
Funding is based on your customers’ creditworthiness, which can be particularly beneficial if you’re newly starting out or your business has a weak credit history.
REAL EXAMPLES OF WHAT WE CAN DO
Find finance to let a shoe company use a large order to fund their expansion plans
Help arrange funding for a bathroom fitting company with an order from a major developer
Find an arrangement for a plastics company supplying a motor manufacturer
Source funding for a furniture manufacturer to support expansion plans
Arrange funding for an electronics manufacturer with a large government order
Financial solutions from Rangewell
The rates and terms offered by invoice discount providers vary. You need expert help to get the most competitive provider for your business type, your sector and your turnover.
At Rangewell, we can use our finance expertise to support your business – and ensure that you have the financial solutions you need. We can help source business lenders who can provide solutions tailored to your sector - reducing your costs, and helping you have more funds to operate and grow your business.
What people who have used Single Invoice Finance say...
Helping you build your profits
Get paid fasterInstead of waiting for customers to pay within their normal credit terms, with Single Invoice Finance you receive cash almost as soon as you issue the invoice, accelerating cash flow from customers.
A confidential serviceYou control how you use your single invoice finance facility. There is no need to notify customers of the discounting arrangement.
Supporting your growthSingle Invoice Finance can support your growth, by providing instant access to cash whenever you have dispatched a large order.
ChoiceYou can choose the invoices you select for finance, keeping you in control of your costs and your client relationships.
Flexible fundingWith Single Invoice Finance you can call on advances as and when you need them.
FastOnce set up, Single Invoice Finance can provide one of the fastest growing forms of commercial borrowing, both for SME's and mid-size corporates.
Download Rangewell’s free and detailed guide to Invoice Finance
The principles behind all types of Invoice Finance, including Single Invoice Finance (or Selective Invoice Finance/Spot Factoring)
Why not all Invoice Finance providers are equal
Invoice Discounting and Invoice Factoring - which is right for you?
Ways in which Invoice Financing can help cash flow for small businesses - release cash from outstanding invoices within your sales ledger to help with your working capital
Will I have the money within 24 hours of submitting individual invoices? Find out how you can choose which invoices to submit and how soon the cash can be realeased
How we can help you pay less
The downsides to Invoice Finance - and how to avoid them
How to arrange Invoice Finance - what paperwork do you need?
Key funding terms explained, including long term, term contract and finance facilities
Costs may be highAll types of Invoice Discounting may have substantial fees. You should ensure that it is the most cost-effective solution to your needs.
Suitable for high margin businessSingle Invoice Finance may not be suitable for low-margin businesses, since the interest on the debt may reduce profit.
Facilities take time to set upIt can several weeks, to set up with a Selective Invoice Discounting facility, during which time your business may face cashflow issues.
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