2 min read
Definition
Spot factoring is factoring a single invoice as a one-off, rather than entering an ongoing facility. It gives a quick cash injection against one specific invoice, useful for a business that occasionally needs to accelerate a large payment without a standing arrangement.
In plain terms
You sell one chosen invoice to a factor, get most of its value at once, and have no ongoing commitment. The convenience and flexibility usually come at a higher per-invoice cost than a whole-ledger facility.
Why it matters
Spot factoring suits rare, large, or one-off cash needs. See selective invoice finance and invoice factoring.
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