Spot factoring lets a business raise working capital by receiving an advance on just a single outstanding invoice. Here are 3 reasons it is effective to offer spot factoring to clients, as shared by Steve Ontiveros of Resource Business Partners, Inc.
Here’s why we do spot factoring:
1. Control: We prefer to give our clients the control over their own AR. They know week by week what their working capital needs are better than we ever will. If they have a 100K invoice, but only need 20K this week – then we’ll do that for them. Why pay the spot factor rate on money you don’t need? That needlessly ties my clients hands behind their backs.
2. Soft Sell: It’s easier to tell a prospect (particularly after they look at spot factoring rates) that they can factor as much or as little as they like. Hire us and fire us in the same day if you feel like it.
3. Higher than Average Referral Rates: For those spot deals we organize, we have seen over the years that our clients are happier in those situations compared to non-spot deals. Happier clients = more referrals = more business for us.
Steve Ontiveros of Resource Business Partners can be found online at www.wefactor.com.
Looking for more information on spot factoring? See the FactoringInvestor.com article entitled “What is Spot Factoring?”
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