Posted under Money and Finance
from http://www.lendio.com 833 days ago

Spot factoring, like regular factoring, is a way to advance the payment of an invoice. This type of financing is helpful when you are waiting for a large payment from a customer but need the money immediately. Spot factoring differs from other factoring services in the way that only one invoice is advanced, as opposed to a contracted amount. This lets your business factor on an as-needed basis.

How Spot Factoring Works

The money that a customer owes you is considered an “outstanding invoice” – also referred to as an “accounts receivables.” Depending on your business and the nature of your transactions, your accounts receivables may take up to 30 to 90 days to be paid off. Some companies’ receivables take up to six months.

For whatever reason, when you need the money before hand, a third party, called a “factor,” comes in and essentially purchases your outstanding invoice. From there ...

Read More...

blog comments powered by Disqus
Editor's Pick
Popular Today