- 05 Jul
Engineering Consultants One-Off Spot Factoring
If you just need funding for a single order, or for a single batch of invoices, you can get spot factoring for just that, on a one-off basis.
We recently helped an firm of engineering consultants get one off spot factoring. The company had been able to finance their own cash flow, but they had the opportunity to take on a large order from a customer. There would not have been able to fund this large order internally, so they wanted us to provide them with options to fund large orders.
If you want to maximise your level of funding, finance can be provided against all your invoices via a whole ledger invoice finance facility.
One-Off Spot Factoring
We found them a one-off spot factoring deal, which can be used once, or again in the future. In this particular case, they had several existing, outstanding invoices, and a couple of new invoices to raise. In total there would be about £30K of invoicing against which they wanted to raise some case immediately.
Financing Large Orders For Engineering Consultancy
Now that the facility has been set up to finance this one off cash flow peak requirement, it will remain dormant, but in place so that it is there in case they need to call on it again. For example, should they receive another large order for engineering consultancy, they can reactivate the same funding facility to raise some finance against the invoicing. This brings some peace of mind to know that you don't have to search around or go through any approval process to get funded in the future.
How Spot Factoring Works
A spot factoring facility is very simple. You select one or more invoices against which to receive funding. The factor verifies these invoices with the customers to ensure they are payable, and they provide a prepayment against them. This is cash that you can draw down directly into your bank account, to use for any purpose. The factor then collect the invoices in when they become due, and the money received from the customers, repays your prepayment. Any balance of cash, once charges are deducted, is released back to you.
Engineers We Can Help
We are able to help all manner of engineers, including:
- CNC (Computer Numercial Control) engineering work.
- Sheet metal work and assembly.
- Precision engineering.
- Ductwork, powder coating and fabrication.
- Electrical engineering.
- Chemical engineers.