Spot Factoring UK 2026: Selective Single-Invoice Finance

Market Invoice is an independent UK invoice finance comparison site that ranks 89 UK invoice finance providers.

Spot factoring (also called selective invoice finance, single invoice finance, or pay-as-you-go factoring) lets UK businesses fund individual chosen invoices without committing the full sales ledger. Per-invoice fees typically run 1.5-4% of invoice value (vs 0.5-1% service charge on whole-book facilities) in exchange for no commitment, no minimum, and no contract. Hydr, Triver, Sonovate and Kriya (Allica Bank) lead the UK spot factoring market.

Last updated: 8 May 2026.

Spot factoring (also called selective invoice finance, single invoice finance, or pay-as-you-go factoring) lets UK businesses fund individual chosen invoices without committing the full sales ledger. Per-invoice fees typically run 1.5-4% of invoice value (vs 0.5-1% service charge on whole-book facil More detail + scope

Summary

Spot factoring (also called selective invoice finance, single invoice finance, or pay-as-you-go factoring) lets UK businesses fund individual chosen invoices without committing the full sales ledger. Per-invoice fees typically run 1.5-4% of invoice value (vs 0.5-1% service charge on whole-book facilities) in exchange for no commitment, no minimum, and no contract. Hydr, Triver, Sonovate and Kriya

This page covers

spot factoring UK: providers, eligibility, costs, when to use, and how the product works for UK businesses.

Not covered here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

Top UK providers for this product

ProviderFee fromMin turnoverWhy it fits
Hydr1.5%+No minDigital-first, single invoice from any sector
Triver2.0%+No minEmbedded with Xero/QuickBooks accounting software
Sonovate0.9%+No minRecruitment-only spot factoring with payroll integration
Kriya (Allica Bank)VariableNo minTrue selective for general SMEs, formerly MarketInvoice
Ultimate Finance1.8%+£50kWhole-book + selective options under one provider

Selective invoice finance vs whole-book factoring

Whole-book facilities split into two models, and the choice drives both cost and confidentiality: our invoice factoring vs invoice discounting guide compares them on cost, credit control and minimum turnover. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

AP

Adam Parker

Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd

Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.

Last reviewed: 30 July 2026

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Spot Factoring Uk FAQ

What is spot factoring UK?

Spot factoring (also called selective invoice finance or single invoice finance) is per-invoice funding with no commitment to put further invoices through the facility. You pick which invoices to fund, the provider advances 70-90% of the invoice value within 24 hours, and you repay when the customer pays. Per-invoice fees are typically 1.5-4% of invoice value, paid only on invoices you actually fund. No contract, no minimum, no whole-book commitment.

Best UK spot factoring providers in 2026?

Hydr is the strongest pure-play spot factoring provider for general UK businesses (digital-first, single invoices from any sector). Triver leads for businesses already using Xero or QuickBooks (embedded directly into accounting software). Sonovate is the standout for recruitment agencies (per-contractor invoicing with integrated payroll). Kriya (formerly MarketInvoice, now part of Allica Bank) is strong for general SMEs needing selective.

How much does spot factoring cost per invoice UK?

Typical UK spot factoring fees are 1.5-4% of invoice value per invoice funded. The fee covers both service and discount charge in one (rather than the split-fee structure of whole-book facilities). For a £20,000 invoice with 60-day terms funded at 2.5%, total cost is £500. Cheaper per-invoice options exist (Sonovate from 0.9% for recruitment, Hydr from 1.5%) but most providers cluster at 2-3%.

When should I use spot factoring instead of whole-book invoice finance?

Spot factoring suits irregular cash flow needs, growing businesses uncertain about long-term funding requirements, businesses with one or two large invoices to fund (rather than the whole ledger), seasonal businesses, project-based services, and businesses below the typical whole-book turnover threshold. The economics tip in favour of whole-book once you're regularly funding 30%+ of your ledger or putting £100,000+ per quarter through selective.

Can I switch from spot factoring to whole-book invoice finance?

Yes. Many UK businesses start on spot factoring to test the product, then upgrade to whole-book once their working capital need is sustained and predictable. Switching providers usually involves a parallel-running period. Some providers (Close Brothers, Bibby) will buy out an existing spot factoring facility to streamline transition to their whole-book product.

Do I need a personal guarantee for UK spot factoring?

Usually not on selective spot factoring up to about £50,000 advance per invoice. Hydr, Triver and Sonovate typically don't require personal guarantees because the funder takes risk on the specific invoice rather than the business overall. For larger spot facilities or repeated use across multiple invoices, providers may request a small PG to cover total exposure.