What is Spot Factoring?
Need a quick one-time infusion of cash for your company? Spot factoring just may be the answer. This business financing solution enables a company to receive an advance on a single outstanding invoice.
While traditional factoring arrangements are often structured on the expectation of monthly reoccurring business, spot factoring can be a one-time transaction. Also known as single invoice factoring, the business can obtain the working capital they need without lengthy contracts or ongoing commitments.
A Factor will review the invoice, confirm the goods or services have been delivered, and underwrite the credit worthiness of the debtor. Once the factor is satisfied they will advance a percentage of the invoice to the business, generally 70 to 90 percent of the amount billed. The balance is kept as a reserve to be released upon payment of the invoice less the factoring fee.
Since the transaction is based on a single occurrence a company offering spot factoring is likely to set a minimum invoice amount to make the accounts receivable purchase worth their time, effort, and investment.
While a factor might hope for future business, there is no obligation for the client to use these services in the future. This makes single invoice factoring a viable business financing strategy for companies that do not use or expect to use factoring in their normal course of business.
- Spot Factoring gives you quick, accessible cash flow. It eliminates the unsureness of when you will get paid by your customers.
- Spot factoring lines are tied to your sales. Your financing line grows as your sales and your company grow.
- Spot Factoring is easy to obtain and can be set up in minutes.
- Spot Factoring is ideal for startups AND established companies.
How long will it take to get the cash for my business
We are the only Spot Factoring providers in the country to offer cash the same day funding when applying for spot factoring. Begin your online factoring application now, and an spot factoring specialist will contact you before the end of the business day. .