Factoring invoices is certainly not a new concept. It is well known as being a widely used form of funding business activities. The rising demand for this service resulted in the introduction of additional services such as single invoice factoring and spot factoring. Companies can get short-term working capital to maintain and grow their business, and improve their cash flow.

Factoring invoices is particularly beneficial for smaller companies who can’t get traditional funding or financing.

Spot Factoring

In this procedure, the factoring firm purchases a company’s invoices at a discount, which allows them to convert them into cash. The process of spot factoring is relatively simple and affordable. Spot factoring firms generally check the credit history of the client, and if satisfactory, offer the funds within 24 hours.

Single Invoice Factoring

Several businesses have clients who don’t pay them immediately. However, like all businesses, they need a steady cash flow. Single invoice factoring is useful in these cases, by providing an advance payment of up to 90 percent of the total invoice amount.

Invoice factoring services should definitely be considered if you are facing cash flow problems.