How does spot factoring work?
Business as usual: You do what you do best and sell your services or products to your customers and issue the invoice for payment.
‘Sell’ your invoices: You decide which invoice you want to ‘sell’. Your invoice finance provider will then buy the outstanding debt on that invoice.
Get your cash: Within 24-48 hrs you will receive up to 100% of the value of your sold invoice directly into your bank.
Customer pays their invoice: The invoice factoring provider will chase customer payments on your behalf. Once the customer pays their invoice the funds will go directly into the invoice finance provider’s trust account.
Receive the balance: Once the funds have been cleared and any pre-agreed fees and charges have been taken by the provider, you will receive the remaining invoice balance.