How Does Spot Factoring Work?
If your company needs a fast, one-time solution to your cash crunch, Factor Finders’ spot factoring services can offer the relief you need!
Spot factoring is a subset of accounts receivable factoring that works the same way as traditional factoring: when you have an invoice for completed products or services, submit a copy to the factoring company. They will verify the invoice and advance up to 90 percent of the face value within 24 hours; then, when your customers pay the invoice the factor will send you any remaining funds.
When you receive funds through spot factoring, there is no limit to the ways you can invest that cash into your business. Purchase equipment or pay your own invoices, make payroll, or pursue new contracts! You will have greater peace of mind when your cash flow is sound.
Request a Quote
Spot Factoring Is A Temporary And Fast Solution To Cash Flow Challenges
Unlike a standard invoice factoring relationship, however, spot factoring is designed for companies whose cash flow needs are temporary and situational rather than ongoing. A spot factoring program offers factoring transactions without a contract or minimum amounts to factor. Because of this, you can save money that would otherwise go to the fees that are built in to many factoring agreements.
Factor One-Time Or Factor Receivables On An As-Needed Basis. It’s Up To You!
When you choose spot factoring over other financing options you retain full control over what invoices you want to sell and when. The spot factoring company will only receive payment for the invoice or invoices you choose to factor, while the rest will be payable to your company as usual. Best of all, if your funding needs change your factor can easily restructure your factoring relationship!
Full Factoring Benefits Without A Full Commitment – Try Spot Factoring
You can still take advantage of the many benefits of factoring when you spot factor receivables, such as back office support and online reporting, and you will still be approved in three to five business days!
Companies in any industry can benefit from spot factoring services, though it is best for industries that experience periodic fluctuations in payment. Industries we serve include, but are not limited to:
- Construction
- Tourism
- Trucking
- Healthcare
- Staffing
- Clothing and textile
- Oil and gas
- Agriculture
Accounts receivable factoring isn’t only for companies experiencing long-term financial issues. Spot factoring is the ideal funding option for any company looking for just a little extra bump to their cash flow. Contact Factor Finders to learn more about our spot factoring services and to get started with a receivables factoring expert today!