Spot Funding Review

Spot Funding is a UK-based invoice finance broker rather than a direct funder. They act as an intermediary, matching businesses with invoice finance providers from their panel of lenders. This means you submit one application and Spot Funding shops it around to multiple funders on your behalf, potentially saving you the time of approaching each provider individually.

How Spot Funding Works

As a broker, Spot Funding does not provide the invoice finance facility itself. Instead, they maintain relationships with a panel of invoice finance providers and use your business details to find the best match. The process typically involves a single application, after which Spot Funding approaches their panel on your behalf. They handle the comparison and negotiation, presenting you with options from different funders.

The products available through Spot Funding include full factoring, invoice discounting, and selective invoice finance. Because they work with multiple providers, the terms, advance rates, and fees will vary depending on which funder is ultimately matched to your business. Minimum turnover requirements, contract lengths, and other criteria are set by the individual providers rather than by Spot Funding itself.

Our Verdict

Spot Funding can be useful if you want to compare invoice finance options without approaching multiple providers individually. The one-application model saves time, and a good broker can sometimes negotiate better terms than you would get going direct. However, you are dealing with a middleman rather than the funder directly, which can add a layer of complexity to the relationship. You may also find that not all providers are represented on their panel, so it is still worth doing your own research alongside any broker introduction.