What is spot factoring and how does it work?

Spot factoring otherwise known as single invoice factoring or selective factoring has been developed to cater for companies that neither want nor need continual debtor funding but wish to avail themselves of increased working capital from time to time without tying themselves in to lengthy or onerous contracts.

Spot factoring is comparatively new to the UK but has been around much longer in the USA and elsewhere.

Unlike traditional factoring arrangements that deal with whole turnover, spot factoring has been developed to benefit companies who’s working capital requirements vary month by month and rather than factoring all of their sales invoices they would prefer to just factor sales invoices as and when they need the extra liquidity.

Other advantages of single invoice factoring are that there are no setup fees, no minimum annual fees, no lengthy agreements and the spot factoring companies that we deal with can provide funding within a couple of days from initial enquiry.

Spot factoring for the construction industry

In addition to the types of trades and businesses that tick all the boxes for regular factoring the spot factoring companies that Factoring Solutions have elected to deal with will also welcome business from the construction industry and unlike the vast majority of factors they will happily fund against Applications for Payment which makes it very suitable for construction industry subcontractors operating large contracts that the regular factors aren’t interested in.

There are several single invoice factoring companies now operating in the UK each with slightly differing operational requirements and Factoring Solutions has relationships with several of these players in order to enable us to introduce clients to the most suitable spot factoring company for their individual needs.

If you would like to know more about this innovative product please feel free to call Factoring Solutions on 01827 707680 to discuss your specific requirements with no obligation whatsoever and as with any other form of factoring or invoice discounting we will never charge you any fees for our services.