Spot Factoring - Single Invoice Funding
Accounts Receivable Factoring is a great tool to improve up a companies cash flow. Sometimes a business may need quick funding and may not want to sell all of its receivables. Spot Factoring, also known as Single Invoice Fundingor Single Invoice Factoring is a way to satisfy these needs. With a selective invoice factoring program a company can pick and choose which invoices to sell to the factoring company. Below you will find everything you need to know about Spot Factoring or Single Invoice Funding including FAQs, pricing, and how it works.
Does Spot Factoring take long for funding?
If a business is looking for single invoice factoring companies they probably need the money quickly. We understand that. When a company applies for spot factoring they can be funded in as little as 24-48 hours. The business loan due diligence process is simple. When you apply for this type of business loan make sure to have your AR aging report, a balance sheet, and an income statement. Also, it's helpful if you have the invoice history of the customers you are looking to factor. This way the we can see that you have been working with them for a while and can trust them. If this is your first time working with the customer that's ok too. Just make sure to have any supporting information like a purchase order, contract, or shipping confirmation to prove the invoice is valid.
Who can use spot factoring?
This type of funding can work for any business who is selling to other businesses on open terms. If you are invoicing your clients on 15-90 day terms than your business can qualify for Selective Factoring.
What is the application process for Spot Factoring?
To apply for single invoice funding is easy. You can visit our MRKT Quiz page to apply, or you can email firstname.lastname@example.org to get the process started right away. Getting approved doesn't take long since we are only buying a few accounts receivable.
Loan - $5k-$1,000,000k
Spot Factoring Rates 1%-3% Per Month
Term - No Minimums
Funding as quick as 24-48 hours
How Does Single Invoice Funding Work?
- Sell or deliver goods or services to your customer.
- Invoice your customer for services/goods provided.
- Assign the invoice to your Factor or Invoice Funding Company.
- Factor or Invoice Funding Company will provide an advance(typically 80% +/-).
- Your customer pays the factor directly.
- Your factor or lender will give you the balance owed minus fees after your customer pays the invoice in full.
- Wash, Rinse, Repeat!
How come I need to sign a personal guarantee for spot factoring?
A lot of people ask this question. After all, who wants to take on the risk? But take a moment to think about it. You are taking on the risk by providing a service or selling a product on open terms. Why wouldn't you take on the risk of borrowing money under an invoice discounting agreement? There are also no minimums for spot factoring so you don't have to worry about how much you may use it.
Are there any use of funds restrictions for spot factoring?
There are no restrictions for use of funds with single invoice funding. Go have fun! That being said. If you are looking for single invoice funding, lenders will most likely question why you need the money. You should certainly have a reasonable answer prepared.
Getting funded with Spot Factoring is easy. If you are not interested in a long term traditional Accounts Receivable Factoring arrangement contact us today. We will help you review the transaction and provide pre-approvals as early as same day.