What is Spot Factoring?
Spot factoring gives business owners more control over their cash flow. Unlike a more conventional factoring program, spot factoring gives business owners the freedom to factor when you need it, on a case-by-case basis. Additionally, unlike a traditional bank loan, factoring won’t create any debt for you or your company.
With some factoring companies, you are required to factor all of your receivables. With Factor Finders’ spot factoring programs, there is no long-term contract, you only factor the invoices that you want to.
How Does Spot Factoring Work?
Spot factoring works very much like traditional factoring programs:
- Business owner delivers goods or completes a service, and he/she sends an invoice to the customer.
- The business owner then sells the invoice to a spot factoring company and receives an advance of up to 90%.
- The customer pays the amount owed on the invoice to the factor.
- The factoring company takes its fee and remits the difference back to the business owner.
The only difference between a traditional factoring model and a spot factoring model is that with spot factoring, the business owner can choose which invoices to sell and when. He/she is not locked into a termed contract, specifying the required length of the factoring relationship.
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Why Work with Factor Finders?
Factor Finders can help you take the guesswork out of finding the right invoice factoring program. We have funding partners across the United States and are familiar with all of their programs. Once we have a better idea of what your business is looking for in terms of funding, we’re more than committed to helping you grow. We will take the time to set you up with an Account Manager from one of our partners and you’ll be on your way to factoring in no time! Why spend more time than you have to researching which company would be best for you? We can do all of that for you–for free. Additionally, unlike most lenders, we will not run a credit check on you or your company. There’s no catch. Call us today for more information on how you can get the working capital your business needs. Let Factor Finders be your solution!