What is Single Invoice Financing?

Single invoice financing is a factoring type that grants companies to capitalize an individual invoice instead of financing the complete accounts receivable ledger. This method of single invoice finance is used by companies that do not offer their customers more than thirty days of the payment period. The companies who have an urgent need of finance can go for this type of financing.

What is single invoice financing?

Single invoice factoring is a method that helps businesses in gaining finance against the invoices given to the customers. In this method, businesses do not need to wait for the customers to pay their invoices to earn the capital flow. This method of financing is highly utilized by businesses as it is an easy method to generate instant cash. If a business is waiting for a large payment from the customer and in immediate need of finance, then single invoice financing is the best way to handle the critical situation of cash flow. This is also known as easy invoice finance as it is easily obtained than other modes of finance.

This method of invoice financing is different from other factoring methods as in this only one invoice is financed and not multiple invoices. This type of financing option is only used when in urgent need of money.

How does single invoice financing works?

When a business offer invoice to the customer against a sale, they lock the selling amount in that invoice and is considered as an outstanding invoice. In factoring when you are in urgent need of money, applying for a loan from a financial institution is not a good option as it needs a lot of time in getting the loan sanctioned. Thus single invoice finance is the most valid option. With this type of financing option, you can get instant capital from the financing company against an unpaid invoice.

What are the benefits of single invoice financing?

There are many amazing benefits of single invoice financing such as:

• Instant cash flow: Business can get cash instantly against the unpaid invoice.
• Need not to worry about credit score: Unlike loan from a financial institution there is no need to worry about the credit score.

Single invoice financing is the easiest way to earn capital flow into the business.