Spot Factoring Information, Quotes & Prices
The term "spot factoring" has become increasingly common within the factoring industry in recent times with a rise in the number of invoice finance companies that use this to describe their products. Factoring is a financial service whereby the factoring company provides their client with funding against their invoices as they raise them. The factoring service also includes access to collections support, although the type, and quality, of service, provided differs between factoring companies.
What is Spot Factoring?
Essentially it is a selective factoring facility where the client can decide which invoices they want to factor. The client can select single invoices, single debtors or in some cases all of their invoices to receive funding against. In some cases, the term is also being used to describe what could be called a single invoice discounting service i.e. similar to single invoice factoring but with the client undertaking their own credit control activity.
How Does It Work?
The client enters an agreement with the spot factoring company, but there is normally no requirement for minimum amounts of invoicing to pass through the facility. The client is able to select single invoices or batches of invoices against which to receive funding. This means the client can adjust the funding that they receive as they wish. In some cases spot factoring is subject to a single charge from the spot factoring company but you would need to check the charging structure for each particular provider.
You can also use an invoice auction approach whereby potential investors bid for the opportunity to fund against your invoices.
The price of spot factoring varies between providers but to compare quotes for spot factoring please follow this link and complete a QUOTATION REQUEST.
The Benefits of Spot Factoring
Traditional factoring facilities often expect a regular amount of business each month from the client and the facility can be subject to minimum charges or fees. With spot factoring the client can factor a single invoice if they wish, with no obligation to factor their other invoices or to meet any minimum charges. This can make spot factoring a very flexible way to fund a business as it allows the client company to dip in and out of the funding as they need.
Where the fees are levied via a single charge, it can make the cost of the facility very controllable and easy to predict for the client business to be able to budget accurately.
As with any form of factoring, it releases the cash that is tied up in your unpaid sales invoices so that you can use it in your business for any purpose.
This is a link to a case study about a client that we have helped: Spot Factoring Help Case Study
How To Get Spot Factoring Help & Prices
Most companies will qualify and we can help you by introducing you to the various "spot factoring" companies within the UK.
This is an example of the price of a selective invoice finance facility.
This is information about whole turnover financing which is an alternative.
To find help and the price for your business, without obligation, complete a QUOTATION REQUEST we will provide you with independent advice from industry experts.