If you need a quick injection of cash but you’re not ready to commit to a term factoring contract, spot factoring may be an option for you. Factoring as a whole is known for its flexibility, which is why one of its most prominent features is the option for spot factoring.
Like regular invoice factoring, spot factoring allows companies with a cash flow shortfall to get an advance on their open invoices. What makes it different from a typical factoring contract is that spot factoring is a once-off service.
Find the five main advantages of spot factoring below.