Spot factoring is a way for a business to access funds by selling unpaid invoices to a 3rd party, a spot factoring company, on a one off basis in order to receive payment quicker.
The business will agree rates and fees with a spot factoring company and then decide which invoice/invoices it wants to assign to them. The spot factoring company, once the invoice is verified, will advance a proportion of its value, usually around 70-85%, to the business.
The spot factoring company will then chase up the invoice from the client and once paid to them in full will reimburse the business with the outstanding balance minus the agreed fees.
A need to access funds quickly, a new business opportunity, rapid growth or even an unexpected slow period, spot factoring allows access to quick cash with no addition to debt and no tie in to contracts or ongoing fees.
If the business is seasonal with sudden increases in sales and a requirement for increased production costs, spot factoring could be more suitable to its immediate needs.
If it is making decisions around extending credit terms to clients, spot factoring will reduce the pressures on cash flow.
When there is a need to cover late payments from customers.
Spot factoring allows you to release cash quickly from your unpaid invoices.
As your lender, we can release up to 90% of your invoices within 24 hours. On payment of the invoice from your customers, we will then release the final amount minus any fees and charges. There are different types of invoice financing options available to businesses depending on the situation and the level of control they require in collecting unpaid invoices.
We are an invoice financing company who offer a solution whereby payments are collected on your behalf managed by our team of expert credit controllers so you can focus on running your business. Our Confidential Invoice Discounting solution is offered to businesses who want to maintain their own credit control processes, therefore this remains strictly confidential so your customers are unaware of our involvement.
Hitachi made the process of moving factoring facilities painless, bearing in mind we previously had our facility with the same provider since 1997. I cant fault Hitachi's staff and processes and we are delighted with the move.
10:45, October 21, 2021
Staff excellent all together professional
05:57, October 03, 2021
Great service so far
14:20, August 27, 2021
Game-changer for our transport business
16:29, August 07, 2021
Excellent customer support
11:53, August 06, 2021