Spot Factoring, or Selective Invoice Finance, is defined as the purchase of a single or one-off invoice.
It is ideal if your business receives one-off orders that it may struggle to fund, has a short-term cash flow issue it needs to overcome, or does not want to be tied into a lengthy invoice finance contract.
The key benefit of this product is that there is no long-term financial commitment to the factoring company (for example, ongoing monthly minimum fees); the client is able to choose individual invoices to be funded when cash advances are required. It is effectively a pay-as-you-go facility which only carries a cost when money is advanced.
Factoring and Spot Factoring is ideal for the following industries;
Temporary Recruitment, Road Haulage, Parcel Delivery, Concrete Delivery, Courier Services, Precision Engineering, Manufacturing, Sheet Metal Workers, Fabrication, Packaging, Stationery Wholesalers, Cleaning Suppliers, Electrical Wholesalers, Paper & Printing Supplies, Timber Merchants, Printers, Industrial Cleaning Companies, Plastic Injection Moulders, Plant Hire, Tool & Equipment Hire.
Avanti has access to a number of specialist funders that can help you with your Spot Factoring needs, so please get in touch. We have direct access to underwriters via Spot Factoring UK and can usually arrange funding within 48 hours.
We would usually recommend that should usage of this type of funding increase, then a more traditional type of facility be negotiated (ie factoring or invoice discounting). If you already use Spot Factoring and would like an appraisal of whether this is the most cost-effective solution for your business, we would be delighted to offer a free appraisal.