Payment terms for these invoices could be 28 days for some, but as much as 120 days for others — taking even longer if the customer doesn’t pay on time.
Conrad Ford nails it in his July 28, 2016 article entitled, “What is Invoice Factoring” when he says, “there’s a big cash flow gap between spending money to complete a project, and receiving payment for it.”
The term spot factoring is a popular option to solve cash flow issues today. It is basically the same thing as single invoice finance, and refers to the increasingly popular practice of being able to pick your spots and choose which invoices you want to factor. This allows you to maximize the amount of cash that you have on hand while incurring the minimum fees to guarantee sufficient cash flow.
There’s a big cash flow gap between spending money to complete a project, and receiving payment for it.
Typical Spot Factoring Transaction
Each transaction has three main parties: the company that sells the invoice, known as the Client; the company that will pay the invoice, known as the Client’s Customer (or account debtor); and the Forex that provides funding through its spot factoring service.
- Forex’s invoice factoring services are fast, and in fact, unmatched in the industry.
- You can decide what percentage of an advance you need.
- There are no long term contracts involved.
- There are no hidden fees.
If you would like to learn more about Forex’s Spot Factoring services, call +65 6666 6666