single invoice/spot factoring

What is spot factoring?

As with invoice financing spot factoring allows you to quickly raise funds for your business. Single invoice financing releases funds into your business from a single unpaid invoice. This method of financing increases cashflow into your business and can be used as and when required.

Spot factoring is also known as single invoice financing. It is very similar to invoice financing, that is a service we also offer. However, this particular type of business finance usually deals with large single invoices. Essentially spot factoring involves selling the invoice to a third party for an agreed fee, which in turn releases funds back into your business quicker than waiting for the invoice to be paid in the usual way. 

Benefits of single invoice financing

How does Spot factoring work?

The first step is to contact us to discuss the invoice you would like to spot factor; we will work with you to secure a deal that is right for your business.

Pass the details of the invoice that you would like to raise funds against to single invoice financing company. 

Funds will be released into your account after the verification process has been completed. The percentage of the invoice paid will be agreed as part of the terms and conditions, but is often around 70-85% of the total value. 

Your customer will pay their invoice to the spot factoring company as per the terms of your agreement with them. Some lenders allow you to retain the relationship with the customer and chase for payment as per your usual business process; however, some agreements would involve the finance company taking on that role.

Following payment of the invoice the balance minus the agreed fees will be paid directly to you and the finance agreement will terminate. 

Contact us to discuss spot factoring now