Glossary · Invoice finance
Spot factoring
Also called Selective invoice finance, Single invoice finance
Spot factoring is financing a single invoice, or a few chosen ones, instead of signing up your whole sales ledger to a factoring facility.
Spot factoring lets you pick which invoices to finance and when. There is no long contract and no commitment to put all your receivables through the provider.
It is useful for a one-off gap: a big invoice to a slow-paying large customer, or a quarter where cash is tight. The price per invoice is usually higher than in a whole-ledger facility, because the provider has less volume and a narrower view of your business.
Many online platforms now offer it, some fully digital. Check whether the customer will be notified and who will collect.
Example
A small agency lands a €45,000 invoice to a large retailer on 90-day terms. It spot-factors just that invoice to fund the next two months of salaries, and keeps its other invoices unfinanced.