Invoice Factoring and Supplier Assurance Letters: A Powerful Formula for Growth

Invoice Factoring & Supplier Assurance LettersWhen a supplier offers trade credit to a reseller, the supplier faces numerous risks:

  1. The reseller’s customer will cancel or alter their purchase order
  2. The reseller won’t be able to deliver the product
  3. The reseller’s customer rejects the product
  4. The reseller’s customer can’t pay their bill
  5. The reseller won’t pay on time or just won’t pay

Invoice factoring combined with a supplier assurance letter by Riviera Finance will remove the reseller credit risks (4 and 5 above).  If the supplier is confident in the product, which they should be, and the reseller’s purchase order is verified, the supplier assurance letter may enable the reseller to buy and resell product without any working capital required.

The Assurance Letter Process:

  1. The reseller establishes a non-recourse invoice factoring account with Riviera Finance.  In addition to cash flow, this provides a credit guarantee on approved customers.
  2. The reseller receives a purchase order from the credit-approved customer.
  3. The supplier reviews the purchase order and arranges to deliver product to the reseller.
  4. Riviera Finance reviews the credit and purchase order of the customer, sets a credit limit, and issues a supplier assurance letter to the supplier.  This is a guarantee to pay the supplier a specific amount after the product is delivered to the customer and the invoice is factored.
  5. The supplier delivers product to the reseller and invoices the reseller.
  6. The reseller delivers product to the customer and issues an invoice with proof of delivery to Riviera Finance.
  7. Riviera Finance verifies customer acceptance and notifies the customer to pay Riviera Finance directly.
  8. After successful verification, Riviera Finance pays the supplier, then pays the reseller the balance of the invoice less the factoring fee and any reserve, according to the terms of the factoring agreement.
  9. Riviera Finance sends the factored invoice and backup to the customer for payment according to the original credit terms.

This remarkable process allows the reseller to buy and sell product without any outlay of cash.  The supplier can substantially limit the transaction risk while enabling the transaction and building a growing trade relationship with the reseller.  All three businesses benefit in the process.

To find out more about invoice factoring and supplier assurance letters, get a quote or contact your local office today.

How to Improve Your Business’s Financial Position

How to Improve Your Business's Financial PositionThere are many factors that determine your business’s overall financial state. To make improvements, you have to assess every aspect of your business and identify areas that need improvement. There are also certain actions you can take right now that can give you better results.

Here are the top 10 ways to improve your financial business position.

Lower Your Expenses

One of the best ways to improve your financial situation is to reduce expenses. Take a look at every area of your business and see if you can find cheaper alternatives for supplies, equipment and services. See if you can find better terms for bank accounts and insurance policies. For larger expenses, find out if you can arrange periodic or deferred payments to keep more cash available for you.

Recover Outstanding Payments

Unpaid invoices can really harm your cash flow and the overall health of your business. If this is a recurring problem for you, it may be time to use a debt collection agency. In the meantime, make sure you regularly remind debtors of their obligations. Also, when making sales agreements, make sure the terms are clear about when the payment is due and terms for overdue payments.

Sell Unused or Unwanted Assets

Do you have items that you no longer need that are just taking up space? Selling them gives you immediate cash. If you’re paying for storage, you also save money on this expense. If you have a large number of such items, consider putting them up for auction. There are auction houses that specialize in business items. Or sell items yourself online with eBay or another online auction or retailer.

Consolidate Debt

When seeking ways to improve business finances, it’s important to look at your current debt. If you have significant debt, it may be advantageous to consolidate it. It’s often simpler and more economical to refinance your debt into a single payment. Do some research and compare different plans before committing to a new arrangement.

Lower Your Prices

When it’s feasible, lowering your prices is always a good way to drum up business. Of course, you have to make sure you’re not losing money. However, in some cases, even a slight markdown helps make your products or services more appealing to customers.

Raise Your Prices

While lowering prices often helps you get more customers, in some cases, the opposite strategy is a better option. Some businesses offer prices that are below market, perhaps because they haven’t adjusted them in a few years. If you can increase your prices without losing too many customers, you may find that this is a good way to improve your financial business position.

Give Customers Multiple Payment Options

The more options customers have to pay, the more chances you have to make sales. In addition to credit cards, some people prefer to pay via personal checks or payment systems such as PayPal. Some businesses now accept Bitcoin as well. See how many new payment options you can offer.

 Raise Money With Grants or Crowdfunding

Do some research on any grants for which you may be eligible. The Small Business Administration, for example, provides grants and loans for small businesses. Another option worth looking into is crowdfunding, which is especially suitable if you have an innovative new product or service on the horizon.

Apply for Business Financing

Applying for a loan can help you acquire some needed capital and improve the condition of your business finances.  If your business credit isn’t established yet, if your growth rate makes your bank uncomfortable, or if you simply want to avoid debt, explore invoice factoring.  If you can raise some money on your own, perhaps from savings, friends or family, you’ll be in a better position to negotiate terms from institutional sources.

Improve Your Marketing

If your marketing isn’t up to date, this is a good time to look for ways to improve it. Consider all of the latest marketing options and platforms, such as email, social media, video and retargeted advertising. Make sure you test all of your ad campaigns to make sure you are getting a solid ROI.

Whatever your situation, Riviera Finance is ready to discuss your cash flow needs.  Contact us today.  If we can’t help you with invoice factoring, we’ll do our best to find a source for you.

Small Business Marketing Growth Strategies

Small Business Marketing Growth StrategiesIf you own a small business, you must always look for ways to grow and stay competitive. This is now truer than ever, with new technologies constantly disrupting the business world. There are a number of practices that can help drive marketing growth in today’s fast-paced and competitive environment.

Email Marketing is Still Relevant

Although email marketing is one of the oldest types of online marketing, it’s still very relevant. No matter what other platforms and technologies appear, people are still using email. Email, in fact, is complementary to other trends such as mobile-centricity and social media. For example, your social media pages can be used to grow your email list. Many of your subscribers will read your emails on their mobile devices. Focus on building your list and giving your subscribers helpful content.

Upgrade Your Social Media Presence

Social media is another trend that just keeps growing. The only things that change are which social media sites are most popular. Be sure to target the sites that your particular audience uses most. This depends on the age, interests and other demographics of your customers. As with blogging and email, it’s important to provide engaging content. Visually interesting content such as photos and videos are especially effective on social media.

Harness the Power of Data

Another term that’s often repeated in the business world is “big data.” Relying on hard data to make your business decisions is another practice that gives you a real edge. When you track your results and make changes based on analytics, you can consistently improve your results. This involves testing of as many variables as possible, including website design, social media practices, email templates, landing pages and any other marketing tools you employ.

Engage Your Audience With Video

Videos are more popular than ever. There are now more types of videos used in business, such as 360-degree video and live streaming videos. People find videos more engaging than other types of content as it lets them absorb information using multiple senses. You can include video content on your website, in your social media posts and even in your emails. No matter what type of small business you have, you can find ways to connect with your customers using video.

Leverage the Power of Blogging

A blog gives you the chance to establish your authority and provides the search engines with lots of content. This is a valuable tool to help you get more website traffic and increase your credibility. When blogging, make sure you publish content that’s relevant to your audience and that directly addresses their concerns and problems. Another principle of blogging is that you have to be consistent about it. If you blog at least once per week, preferably more, you’ll soon have a large body of content on many topics.

Understand that Mobile is the Dominant Force in Marketing Today

The expansion of mobile devices is the most significant long-term trend that has a huge impact on businesses. A few years ago, people started talking about making websites mobile-friendly. Now, you need to take this a step further and aim to be mobile-centric. That’s because mobile is quickly overtaking computers when it comes to internet browsing and online commerce. If you want to get more leads and sales, you have to make sure that your website and lead generation process is easy for mobile customers to manage. Because people are accessing the internet via mobile, this is really the single most important factor for accelerating marketing growth in the years to come.

In addition to the small business growth strategies discussed above, it’s also crucial for small businesses to maintain a healthy cash flow. One convenient way to ensure you get paid promptly is to start using invoice factoring with Riviera Finance. This service makes a big difference when it comes to your cash flow and accounts receivable management.

Riviera Finance Reviewed on Merchant Maverick

Riviera Finance Gets a Five Star Rating from Merchant MaverickRiviera Finance was given a Five Star rating on Merchant Maverick, an online review website of financial and other business services for small business owners. The review was published on April 7, 2017 by Bianca Crouse.

Merchant Maverick said in closing, “Riviera Finance is best for growing B2B and B2G businesses that need invoice factoring to solve cash flow problems, especially if your business is close to one of this company’s local offices.”

Riviera Finance Merchant Maverick Review

 

 

The highlights of the review included:

  • Invoice factoring
  • Non-recourse factoring
  • Startups okay
  • Poor credit okay
  • No startup fees
  • No monthly minimums
  • Friendly customer service

The review touches on a range of business areas of Riviera Finance, such as services offered, borrower qualifications, application process and customer service and technical support, among other areas.

We are pleased to be featured on a review site that provides ample facts and details for prospects to make informed decisions.  And, although our product is essentially simple, our industry is complex with many details to be understood. We explain invoice factoring on our What Is Factoring page, but it’s nice to see a well-known comparison site break it down for our potential clients.

Amad Ebrahimi, who founded Merchant Maverick in 2009, said he started the company out of frustration with all of the misinformation and “shady tactics” that he saw online when trying to conduct business. Merchant Maverick spends dozens of hours researching and testing each company or product, so the user doesn’t have to.

Get more information about Merchant Maverick and their rating process on their website.

How to Organize Your Business

7 Tips to Organize Your BusinessSuccess in business depends on many factors. You need to target the right customers, launch effective marketing campaigns and deliver great products. Some businesses, however, neglect fundamental areas such as organizing their finances. If your books, files and records aren’t well organized, it can lead to problems in areas such as cash flow, taxes, accounting and serving your customers efficiently. That’s why it’s so essential to learn how to organize business details.

Obtain the Right Financial Software

Using the right software makes a big difference when you want to organize business finances. Decide where your needs lie and what problems are causing you the most headaches. Then you can find a software application that’s well suited for your needs. If you need accounting software, for example, Quickbooks might be the right solution.

Back Up Your Files

If you don’t back up your files, you risk losing essential information in the event of a computer crash or hacker attack. There are a number of cloud-based options for backing up files, such as Google Drive, Dropbox and many others. Don’t neglect this simple yet essential business organization practice.

Use Convenient Small Business Apps

There are many apps for small business that help you organize business tasks such as processing payments, communication, accounting, time management and more. Communication apps such as Fuze and Addappt help you stay in touch with employees, no matter where they are at any given time. If you’re struggling with how to stay focused on your goals, time management apps such as Clear and My Minutes are very useful.

Get Professional Help if You Need it

In some cases, it’s more efficient and economical to call in a professional rather than trying to do everything yourself. If your accounting is beyond the expertise of you or your employees, a CPA or other financial professional may be needed to sort things out. Depending on your needs, you can hire a part-time or full-time employee or use an agency for specific tasks when needed.

Don’t Mix Up Personal and Business Finances

One common mistake often made by small businesses is not keeping their business and personal finances separate. This often leads to confusion, especially when it’s time to file your taxes. It’s also a good idea to separate your personal and business credit. That way, your personal credit isn’t harmed if your business goes through hard times. Additionally, separating these two areas of your life just makes everything easier and less confusing.

Create a System

One of the principles of business organization is to have a system in place. Otherwise, your attention to tasks such as filing, managing invoices and balancing your books can end up being haphazard. Make sure all of your employees know what’s expected of them and arrange specific times to complete each task.

Improve Your Cash Flow with Invoice Factoring

Many businesses experience cash flow problems due to late payments or other unforeseen financial issues. One convenient solution is invoice factoring, which lets you receive immediate cash based on your accounts receivable. Riviera Finance offers invoice factoring services that help businesses of all sizes and in all industries solve their cash flow challenges.