Yes. Factoring arrangements will allow you to pick and choose which of your customer’s invoices you factor, so it’s not normally an all or nothing solution. However, the number of invoices, type of customer, credit limits and invoice value (minimum and maximum) must still meet the conditions set out by your factoring agent in your contract. Choosing which invoices to factor will very much depend on the need to free working capital and improve cash flow at any given time. Also known as selective or spot invoice discounting, single invoice discounting is appropriate for businesses with a single customer only, a seasonal trading pattern or a need to finance a specific, one-off project.
An additional question: Respond to this Question
- How can factoring help my business improve cash flow?
- What are the requirements for factoring?
- How does a factor determine which invoices to accept?
- What's the difference between factoring and invoice discounting?
- What does a typical factoring contract contain?
- How much cash will I get up front for my invoices?
- What is reverse factoring?
- What are the different types of factoring?