A Helper during a Financial Need Is a Friend Indeed
If you are a new entrepreneur who wants to succeed in the world of business working hard might not be enough and you will at least have to have some knowledge in business strategies. For an example just imagine a situation where you supplied one of your greatest customer with some goods.
In order to meet the demand you put all you had and made the goods your customer wanted and delivered them to him. But you suddenly get an email from that customer asking whether it’s ok to delay the payments for the goods you sent by 60 days. In such a situation what can you do?
This is where spot factoring companies comes to your help. These companies help small and medium typed businesses or SME’s to sustain in such times by providing funds. To see how it works keep on reading.
How do they go about solving the problem?
When you are faced with a situation like above these companies comes in between your relationship with the client as a third party. So now the connection between your customer and you can be done through this particular company.
What do they do?
These institutions acts as a middle man between the seller and the buyer and you are given the option of selling them your invoices related to the goods you sent to the customer. When you do they validate your invoice and sends you cash funding equal to 90% of the monetary value the invoice holds. This benefits all three parties in the following way.
- The financing company gets the chance to enter into a contract and charge a fee.
- The business person (you) gets a cash deposit to grow his business without waiting for the customer to pay.
- The Buyer too is given a comfortable period to settle the debt he owes to the business.
What are the advantages of using such companies?
The main advantage is you will be able to get cash deposit within the shortest duration of time like 24 hours with least amount of paper work. You can use this service whenever you want and once the deal is done you can move on because it’s not a long term contract.