HOW SPOT FACTORING HELPS RESOLVE CASH FLOW GAPS (September 19, 2018)
For many companies doing business today, there is a gap in cash flow between spending the funds needed to complete a project and receiving payment for the work.
Payment terms for these invoices could be 30 to 45 days for some and even longer if the customer doesn’t pay on time.
The term spot factoring is a popular option to solve cash flow issues today. It is basically the same thing as single invoice finance and refers to the increasingly popular practice of being able to pick your spots and choose which invoices you want to factor. This allows you to maximise the amount of cash that you have on hand while incurring the minimum fees to guarantee sufficient cash flow.
A typical spot factoring transaction has three main parties: the company that sells the invoice, known as the Client; the company that will pay the invoice, known as the Client’s Customer (or debtor); and the IFG that provides funding through its spot factoring service.
Interface’s invoice factoring services are fast and you can can decide what percentage of an advance you need. There are no long-term contracts involved. Spot factoring enables a “use as you need it” service. The fee structure is simple – applying a fixed discount to each invoice. There are no hidden fees. Last, but not least, you will get personal service and always deal directly with a decision maker.