What is spot factoring – single invoice factoring

Spot factoring otherwise known as single invoice factoring or selective factoring is a relatively recent arrival to these shores despite being a mature financial product in the USA and elsewhere in the world.

One of the drawbacks of a traditional factoring arrangement for many companies is that the factors tend to want a contract for a minimum of twelve months with fairly lengthy notice periods involved and they also tend to insist that all invoices are put through the factoring facility whether funding is required or not.

Whilst this probably suits many companies it doesn’t suit everyone and spot factoring has been developed to cater for those that neither want nor need continual debtor funding but wish to avail themselves of increased working capital from time to time only without tying themselves in to lengthy or onerous contracts

Other advantages of single invoice factoring or spot factoring are that there are no setup fees, no minimum annual fees, no contractually lengthy agreements and certainly the factoring company that we have elected to deal with can provide funding within days from initial enquiry.

One of the business areas that most factoring companies tend not to consider and refuse to deal with is the construction industry as most of them don’t like the sector and won’t fund companies in it but our preferred single invoice factoring company will welcome enquiries from the various subcontractors in the construction industry and will happily fund applications for payment as well as normal sales invoices often making it the ideal financial tool for construction industry subcontractors

As with every other form of factoring or invoice discounting there are no charges for our services so for an informal, friendly chat with one of the few specialist factoring brokers that are truly independent please contact us now.

Factoring Solutions

5 Torridge, Hockley, Tamworth, Staffordshire B77 5QL

Tel: 01827 707680