Spot Factoring : Single Invoice Finance

Why is there a need for Spot Factoring? Good cashflow is essential for the smooth running of a small to medium business however your customers don’t however work to your cashflow requirement. Clients very rarely pay within a few days and take 30, 60 or 90 days to pay an invoice.

Many businesses have to balance the cashflow as businesses take longer to pay or because overdrafts are being reduced or withdrawn and loans are harder to get.

With this in mind, we recommend Spot Factoring or Single Invoice Financing through Platform Black who have created a simple solution that enables you to access cashflow on demand via a pay as you go basis.

Would Spot Factoring work for me?

Spot Factoring is a new way to raise funds within a few days by allowing you to auction individual invoices to investors. Investors bid against each other to advance you funds for 30, 60 or even 90 days
which means you get access to cashflow at the most competitive price.
You set the auction terms and the maximum cost of finance allowing you stay in control of the process.
You can sell as many or as few invoices as you want, when you want.

What are the Fees?

Businesses like Platform Black’s service as there are no arrangement fees, no annual fee, no extension fee or exit fees, and no fees for not using the facility – just the fee for borrowing the funds, the transaction fee per auction, and a small one-off lifetime membership fee of £310.
Fees for borrowing funds via Spot Factoring have been bid down to as little as 0.5% per 30 days

Platform Black’s transaction fees per auction are:

  • 0.50% for a 30 day credit period, or £100 minimum
  • 0.75% for a 60 day credit period, or £150 minimum
  • 0.90% for a 90 day credit period, or £180 minimum

Spot Factoring Process

  • Your business needs to release funds tied up in invoices.
  • You register as a member of Platform Black.
  • Your business sets up an auction, setting terms that work for them.
  • Platform Black alerts investor members, who start bidding.
  • The auction closes and the winning bidder(s) transfer funds (80% of invoice value) to Platform Black.
  • Platform Black passes the fundS (80% of invoice value) to your business within 48 hours of the auction closing.
  • Once the invoice is paid, you receive the remainder of the invoice value minus the transaction fee.

Business Benefits

  • Pay only when you use the service: pay as you go, completely transparent, no hidden charges
  • Competitive cost of finance:  you set the maximum price you’re prepared to pay, our investors compete to give you the lowest price. And remember, you’re leveraging your customers’ credit ratings, not just your own, so you get a better price than you would just using your own credit rating
  • Confidential:  we don’t tell your customers
  • Flexible: no charges over your business, no personal guarantees, no debtor concentration issues, no lock ins, no notice periods

To Summarise...

Spot Factoring is a new way to raise funds within a few days by allowing you to auction individual invoices to investors. Investors bid against each other to advance you funds for 30, 60 or even 90 days