In August and September thirty-one (31) transportation clients benefited from Riviera Finance’s non-recourse factoring program when the outstanding balances of 15 transportation brokers and 1 shipper were deemed uncollectable and written-off. Most all of these companies have since gone out of business. The list of companies include Amcon Steel, Drug Transport, Facto Express, ACS Logistics, Lulu Logistics, Loads R Us, Marwalk, Express Loading Services, LMS Transport, MND Transport, Northwind Logistics, & Bees Are Holdings. The transfer of credit risk was assumed by Riviera when the invoices were purchased from the carriers on a non-recourse basis. Riviera then assumed the credit loss, amounting to $153,000.00 on these account debtors.
When searching out factoring companies often times the value of non-recourse factoring is seen as less important than obtaining lower rates. However, the assumption of credit risk by a non-recourse factoring company such as Riviera Finance can be a critical component to the success of the small business that may not be able to afford bad debt.
With Riviera Finance’s non-recourse factoring program credit management is not taken for granted, but considered a major component of service. A Riviera Finance client will find unparalleled support in the credit management provided to them, including credit evaluation on the customer, automated credit decisions through Fastcredit, invoice collection, and the assumption of credit risk. These are very tangible benefits of Riviera Finance’s non-recourse factoring program that demonstrates a vested interest in the accounts purchased, and also a deep rooted understanding on how difficult it is for a small business to absorb credit loss.