Spot invoice finance, or spot factoring, is a very simple and fast method for raising finance on a one-off basis. Every business, no matter how well run, encounters the need to raise cash quickly from time to time. This is not something that traditional lenders are noted for. The solution lies in the alternative finance markets. Let our experienced team compare options and secure you the best deal.
The reasons why a business needs cash quickly are wide-ranging. Usually it is due to a cash flow squeeze caused by a slow paying debtor, or an unexpected expenditure, or simply a side effect of a cyclical business. Regardless of the reason, it is important to know where to turn to when the need arises.
What is spot factoring?
Basic spot factoring means you assign one invoice to a specialist finance provider in exchange for immediate payment of a substantial proportion of the invoice value. The provider then deals with the debtor and is paid eventually by the debtor. The difference between the amount you were initially advanced and the total invoice value is then forwarded to your bank account, less any agreed service fees and interest.
Why consider spot factoring?
- Spot Factoring allows your business to raise cash against a single invoice or debtor without having to finance your whole sales ledger.
- If your business must wait up to 90 days to get paid, you could be advanced up to 80% of the invoice value once the goods or services you supply have been delivered or completed.
- Facilities can be confidential or disclosed and costs are usually at a fixed cost per day of the funds borrowed.
- A good product for seasonal businesses or businesses who want access to their cash faster on a particular debtor or invoice.
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For more information, please speak with one of our advisers today by calling 0345 50 50 888.