Why Spot Factoring is becoming the new normal?
Spot Factoring is a form of invoice finance which allows you to borrow funds from single or selected invoices, without a contractual tie in.
It is ideal for businesses who have a small number of slow payers, or for those larger job which will affect cash flow. Spot Factoring gives companies the funding required, without being tied in to a long term contract.
Spot factoring can be more expensive than traditional invoice finance products, however you only pay for funds borrowed from the facility (which can make this cheaper in the long run). There are no fees to keep the facility open and available if you are not borrowing from it.
More and more businesses are using the Spot Factoring product due to its increased flexibility and simplicity in comparison to more traditional invoice finance facilities. There is no contract tie in period, you pay only for what you use and there is no obligation at any point to use the service.
This is why Spot Factoring is becoming the new normal choice of lending for many businesses.
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