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Single invoice factoring, often called spot factoring, is available via Smart Factoring Quotes.

If you are looking to factor a single invoice or a batch of invoices this is possible. Traditional factoring and invoice discounting facilities typically require a lengthy contract that will attract a service fee whether you use the facility or not.  Spot factoring attracts a simple charge which is a small percentage of each invoice and you can pick and choose when to use the service and which invoices you finance. The big advantage compared to traditional invoice finance facilities is the flexibility – you can access cash when you need it rather than being tied in to lengthy contracts that require every invoice to be notified.

How does spot factoring work?

The spot factoring lender purchases your chosen invoice at a discount providing you with the cash you need to buy new stock, pay wages or pay suppliers. When the invoice is due your customer pays the spot factoring lender in full. The spot factoring lender will provide you with the balance that they owe you less their charges.

Criteria For Spot Factoring

Spot factoring is available to most businesses that sell to other businesses on credit terms. You could access spot factoring even if:

  • you are a fairly new start business
  • you are in the construction sector
  • you have had recent credit issues

The focus is really on the financial strength of your customer. Are they able and willing to pay for the goods or service that you have provided?

What is the process in applying for spot factoring?

  • Once you have spoken to Smart Factoring Quotes and selected a suitable spot factoring provider you would make contact with them.
  • The spot factoring lender would undertake some simple due diligence which will take a few days.
  • Then you can choose some invoices to for the spot factoring company to purchase.
  • The debtor named on each invoice would be checked for credit worthiness.
  • The spot factoring company would also check that the sale described on the invoice had been completed satisfactorily.
  • Upon completion of these checks the debtor is advised that the spot factoring company has purchased the invoice.
  • You are then paid for the purchased invoice or invoices.
  • When the invoice is due the debtor pays the spot factoring company directly.

Benefits of Spot factoring

  • leaves you in control of your business as you can choose which invoices you finance
  • flexibility
  • cost effective way of accessing working capital in an ad hoc manner
  • fast and flexible service
  • available to the construction sector

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