Spot factoring vs whole-ledger contract: do you have to factor every load?

There are two shapes of factoring deal and the factor will steer you toward the one that's better for them. Whole-ledger means every invoice you generate runs through the factor — you can't fast-pay one load and wait standard terms on another. Spot, or selective, means you pick which invoices to factor and keep the rest.

Whole-ledger usually carries the lower headline rate, because the factor is guaranteed your full volume. That's a fine trade if you genuinely want everything factored. It's a bad trade if you have a couple of solid brokers who pay fast on their own — you're paying to factor invoices you didn't need to.

Spot costs more per invoice but lets you factor only the slow-paying or unrated brokers and keep the full rate on the good ones. For an operator with a mixed broker book, the math on selective often beats a cheaper whole-ledger rate once you account for what you didn't need to factor.

The short answers

What is the difference between spot factoring and contract factoring?

Spot or selective factoring lets you choose which invoices to factor. Whole-ledger or contract factoring requires you to factor every invoice from every broker. Whole-ledger usually has a lower rate; spot gives you flexibility at a higher per-invoice cost.

Can you factor only some invoices?

Yes, with a spot or selective factoring agreement. Many factors push whole-ledger because it guarantees them volume, but selective factoring exists if you only need fast cash on certain loads or brokers.

What to hold onto

• Whole-ledger requires factoring every invoice; spot lets you choose.
• Whole-ledger has the lower rate but no flexibility.
• Spot costs more per invoice but you keep the full rate on fast-paying brokers.
• A mixed broker book often favors selective factoring.