What is Spot Factoring?

Growth can create cash flow pressures as a company struggles to meet increased financial obligations. As a result, many growing businesses are turning to spot factoring as a flexible and quicker alternative to traditional financing. In many cases traditional bank financing or extending an existing line of credit may not even be an available option. Spot Factoring enables your company to get the working capital it needs to grow today!

Spot factoring is the purchasing of financial assets in the form of accounts receivable from a company such as River Rock Financial. We can convert your current accounts receivables into immediate cash without affecting your hard earned equity or incurring any debt. Traditional bank loans involve only two parties and are largely based on the business’s credit worthiness, while spot factoring involves three and is based on the value of your receivables. Unlike traditional factoring companies, River Rock Financial’s spot factoring systems are used as needed and don’t require any long term commitments or volume requirements.

 River Rock Financial will work with you to determine the best way to utilize spot factoring to help your business succeed. This could result in the occasional transaction, or a more frequent and well planned timeline of usage lasting as short or as long as required.

Are you looking to expand your operations?

Do you worry about meeting payroll obligations? 

Do you need to free up or establish supplier credit?

Would you like to take advantage of early payment discounts?

Do you need to make government tax payments on time?

Although these problems are all different, they have a common root and a simple solution.  You have slow paying clients and they are affecting your business.  The solution to this problem is to accelerate client payments using spot factoring.  Spot factoring allows you to break the 45 day payment cycle and reduce it to 2 days.  If you are willing to provide your customers with a 2 & 10 discount for early payment, then invoice discounting in the perfect solution for you! 

If slower paying clients are holding your company’s growth back, then invoice discounting may be the solution that will help your business grow.  Now you don’t need to wait for payments to come in, River Rock Financial will do the waiting for you and advance your company the money it needs today.

While Spot Factoring is primarily a working capital facility, it may also be used to fund transactions such as mergers, acquisitions, management buy-outs, management buy-ins and capital expenditure programs.