5 Good Reasons a Company Should Factor

5 Reasons Your Company Should Factor Invoices | Riviera FinanceMaintaining healthy cash flow is always one of the biggest challenges you face as a business owner. One of the best methods for improving cash flow is invoice factoring. It’s often a simpler solution than obtaining a traditional business loan. When you factor invoices, you receive payment up front rather than having to wait for customers to pay you. Let’s look at the top reasons to factor your invoices.

Top 5 Reasons to Factor Your Invoices

  1. Faster Than Applying for a Loan

When you apply for a loan, you often have to wait a long time before you know whether or not you’ve been approved by the bank. If you need funds right away, this waiting time can be frustrating. Invoice factoring is a much faster to get the money you need. You can often obtain funds within 24 hours of setting up factoring.

  1. Frees You from the Collections Process

Collections is a tedious and time-consuming process. Many small businesses don’t have a collections department or the one they have is under-staffed one. When you factoring your invoices, you can make better use of your time. You and your employees can concentrate on more productive tasks rather than having to worry about collections.

  1. Get Money Even if You’ve Been Turned Down for a Loan

Banks turn down businesses who need money for various reasons. This can happen if your business is new or you’ve had trouble paying back loans in the past. In such cases, even if you do obtain a small business loan it’s often for a small amount and comes with unfavorable terms. Invoice factoring is an alternative to loans as the process doesn’t require you to have a pristine credit history.

  1. Get Your Money Fast

One of the biggest advantages of factoring is that it frees you from having to wait for customers to pay invoices. Businesses typically have to wait over a month for clients to pay. When you factor your invoices, you receive funds right away from the factoring company. This gives your business more cash to work with for any purpose, such as keeping up with expenses and payroll, buying essential equipment or expanding your staff.

  1. Avoid Accumulating More Debt

While it’s sometimes unavoidable, debt can be a burden for businesses. Every time you obtain a loan, you go further into debt. This can have a negative impact on your credit rating. Invoice factoring is a way to obtain funding without taking on new debt.

These are some of the best reasons to factor your invoices. If improving your cash flow is something that could help your business, it’s important to find a factoring company that’s reliable and experienced.

Riviera Finance has been providing financial services to businesses since 1969. They provide flexible financing to all types of businesses and you can get funding in as little as 24 hours.

Accounts Payable and Your Business

Accounts Payable and Your BusinessThe way you manage your accounts payable has a major impact on your business. It’s essential to understand the state of your cash flow.

There are several points to keep in mind in order to stay on top of business accounts payable.

  • Create a system. Make sure you have a process for filing and saving all of your invoices. It’s best to keep both printed and digital copies of everything for reference.
  • Track expenses weekly. It’s easier to keep track of expenses on a weekly rather than a monthly basis.
  • Pay invoices early. When you pay early, you can often get more favorable terms from creditors.
  • Seek ways to improve your cash flow. You may be able to cut back on certain expenses or find ways to increase efficiency.

Top Accounting Software Choices

There are many types of software that make it easier to manage your AP. Here are some recommendations.

  • Intuit Quickbooks – This is one of the most comprehensive accounting software applications with many functions, such as tracking expenses, billing, managing money and much more.
  • Xero – If you want something more streamlined than Quickbooks, Xero is a good alternative. It’s a cloud-based accounting software that you pay for via a monthly subscription.
  • Zoho Books – This accounting software is designed especially for small businesses. It’s also efficient for integrating with other software, such as Stripe and many CRM suites.
  • FreshBooks – Another efficient cloud-based accounting software that’s made for small business owners who are seeking simple solutions. FreshBooks makes it easy to automate tasks such as managing expenses, sending out invoices and following up with clients.
  • Wave Accounting – Wave provides a free suite of accounting and other types of software for small businesses. Free services include receipts, accounting and invoices. You can also upgrade to paid services for accepting credit cards and setting up recurring payments from customers.

How to Choose the Right Accounting Software

There are quite a few choices when it comes to AP tools. The software applications mentioned above are all good, but it’s important to choose one that’s right for your needs. Take the time to research your choices and decide which features are most important to you. Consider these criteria as well:

  • Cost – The price is always an important consideration. If you’re on a limited budget you can always start with a free choice such as Wave.
  • Ease of Use – This depends on your background and preferences.
  • Efficiency – One of the advantages of using software is to save time. Look at the features and determine which is likely to save you the most time.
  • Reporting Options – Choose software that has reporting features that you need.
  • Mobile Access – It’s convenient to use software that’s mobile-friendly so you and your employees can access it from anywhere.
  • Accountant Access – If you work with an accountant, it’s important to use software that he or she can easily access and is comfortable with.
  • Integrations – Consider how well the software integrates with other applications you use.
  • Limitations – Does the software have any drawbacks or limitations that make it unsuitable for your business?
  • Customer Service – Look at the company’s customer service options to make sure you can easily contact them when necessary.

These are some of the main considerations to help you choose the best accounts payable solutions. You may have needs or preferences of your own as well. What’s essential is that you find the best possible system for managing business accounts payable.

And if you’re looking for a way to improve your cash flow, you might consider invoice factoring. Riviera Finance has been helping companies for almost 50 years.

10 Reasons Why Small Businesses Fail

10 Reasons Small Businesses FailOne of the unfortunate facts about small businesses is that many of them fail. There are many possible causes for failure. Some of these are due to lack of planning while others are related to the economy and consumer demand. If you’re seeking small business success, it’s important to be familiar with some of the reasons you could potentially fail. Here are the top 10 small business fail reasons.

Not Creating a Business Plan

Business plans are not only essential when you’re applying for loans. They’re also crucial for making sure you’re clear about your vision. Creating a business plan forces you to map out every step of your business to ensure all of your bases are covered.

Flawed Business Model

Not all business ideas are practical. Just because you’re interested in something or it seems like a great idea doesn’t mean that it’s something that will attract customers. Make sure you do thorough market research before you invest time and money into a business.

Lack of Capital

You need a certain amount of capital to get a small business off the ground. Many businesses fail because they underestimate how much working capital they need. A general rule is to assume that you’ll need at least a year before your business becomes profitable. You also have to plan for issues such as late-paying customers, lawsuits and economic downturns.

Insufficient Marketing and Promoting

Just because you open a business doesn’t mean that customers will automatically start knocking on your door. You need a marketing plan that targets the right customers and makes them aware of your business and products. Whether your business is online or offline, you need a website and a social media presence. You also need a certain budget for paid advertising to draw the right people to your business.

Too Much Overhead

One essential consideration for small business success is keeping costs down. If you’re spending too much on things like equipment, office or warehouse space or hiring more staff than you can currently support, you’re going to run out of cash quickly. You must carefully consider expenses and seek ways to minimize them. It’s better to gradually scale up than to overextend yourself and burn through all of your cash.

Leadership/Partnership Disputes

A business needs a clear vision to succeed. If leaders or partners don’t agree on fundamentals, there’s bound to be conflict. This has a harmful effect on the entire business. Before you partner with people, make sure you share the same vision.

Lack of a USP

A Unique Selling Proposition/Point or USP is what sets you apart from the competition. If your product or service is identical to something that’s already available, it will be difficult to attract loyal customers. To avoid this small business fail, it’s necessary to identify a UVP. This is something to emphasize in all of your marketing and branding efforts.

Employees are Under-skilled or Unmotivated

Unless you’re running a solo enterprise, your employees are a major factor in your success. It’s important to recognize the specific skills, both hard and soft, that your employees need to help you succeed. It’s also essential to choose people who are a good fit for your vision and who are motivated to make a real contribution.

Low Quality Products/Services

One of the simplest reasons that a business may fail is that it delivers poor quality products or services. Quality control is more important than ever in an age when customers can leave reviews all over the internet. Businesses can no longer afford to compromise when it comes to quality. This also applies to customer service.

Losses Due to Bad Debt or Fraud

Small businesses today must be vigilant about security. This includes both internal and external security. Thoroughly vet employees to reduce the chances of internal fraud. Cybersecurity is essential for any business with an online presence. Credit card debt and loans with unfavorable terms can cause bad debt to build up, another common cause of small business failure.

If you’re looking for a way to resolve cash flow issues in your business, you should consider invoice factoring. Find out how Riviera Finance can help you continue your business growth with working capital today.

The Top 5 Ways to Improve Your Small Business Cybersecurity

Cyber Security Tricks for Small BusinessCybersecurity is a growing concern for all types of businesses as hacking and identity theft get more and more common. You can significantly reduce your risks by being vigilant and taking certain precautions. Here are the top five small business security tips to help you stay safe.

1. Create a Security Strategy

The most important step in safeguarding your business is to actually have a concrete cybersecurity policy in place. While most large companies do, this is often not the case with small and mid-sized businesses. Make sure all important data is backed up. Install security patches as necessary. Use the most up-date versions of all software that your business uses. Your cybersecurity policy should be regularly updated to reflect the latest threats as well as the latest advances in security technology.

2. Apply a Layered Approach to Security

Security is not so much a matter of doing one particular thing right. It actually depends on a variety of precautions and strategies. These include robust security software, a solid firewall, thorough education of your staff and ongoing monitoring of your system for unusual activity. A layered approach is one where you apply several steps to keep yourself secure and make sure everyone in your business is on board with your strategy.

3. Limit Admin Access

The more people who have admin access, the greater your risks. This isn’t only because people who have access are dishonest but because people get careless and make mistakes. By limiting admin access to a few trusted individuals, you reduce the risks associated with lots of people logging into your system.

4. Insure Yourself Against Cybercrime

Because cyberattacks are now so rampant, certain insurance companies are now offering policies that are specifically geared to this problem. A cyber insurance policy can help you rest easier in the event that an attack does occur. Naturally, you should still do everything you can to prevent such an event as an attack can severely disrupt your business even if you are compensated.

5. Monitor and Secure Employee Devices

In some cases, it’s employee’s personal devices rather than company ones that cause breaches in security. It’s important to have a policy in place that balances the monitoring and securing of such devices while still giving employees sufficient privacy. Make sure you’re transparent about your policies so employees know what to expect. For example, you might reserve the right to monitor only work-related communications on personal devices.

Online security may not seem like a crucial issue but if you ever experience an attack it will suddenly become incredibly important. Prevention is always the best policy and the above guidelines can help you stay prepared and reduce the chances of a cyber attack. Small business security is one way to help your business thrive in the modern world. Another way is to enhance your cash flow.

Lack of cash flow is a common problem that prevents many small businesses from reaching their true potential. One of the simplest and most powerful ways to improve your cash flow is to get invoice factoring, a process that lets you get paid for accounts receivable up front. To learn more, contact Riviera Finance today.

Facebook, Instagram, Twitter, Snapchat – Do You Need Them All?

Facebook, Twitter, Instagram & SnapChat - Do You Need All of ThemSocial media for business is no longer optional. You can be sure that most of your customers are active on social media. There are, however, many sites from which to choose. Let’s look at some of the most popular social media platforms for business so you can make a better decision about whether or not you need to use all of them.

Facebook

At 13-years old with around two billion active users, every business really needs a presence here. While certain sites are more specialized, Facebook is extremely broad and used by almost everyone today. Facebook also provides many options for marketing and engagement. Organic content, as with your Facebook page and daily posts is free. Paid advertising with Facebook ads provides many targeting options, making it relevant to every type of business.

Twitter

Twitter, though not as large as Facebook, is large and popular in its own right with more than 300 million users. Twiter is one of the best sites for communicating timely news. Indeed, many people share breaking news with their tweets. It does have a couple of limitations, though. The shortness of messages and the speed at which the feed moves means that it’s hard to ensure people are actually seeing your tweets. On the other hand, Twitter recently expanded the maximum number of characters from 140 to 280 characters, though it remains to be seen if this is permanent or just a test. Twitter also provides advertising options as with sponsored tweets. You can leverage Twitter by seeking relevant people to follow, joining groups and chats and posting live videos.

Instagram

Instagram, which is owned by Facebook, is a fast-growing visual platform with close to 700 million users. Instagram is a mobile-based service with a young user base. Instagram is especially useful if your business has products or services that can be depicted in an appealing way with images. This includes physical products as well as anything in the hospitality industries such as travel and restaurants. With appealing features such as photo filters and editing options, Instagram encourages users to express their creativity. If your business uses Instagram, it’s helpful to engage with followers and encourage them to submit their own photos. Instagram advertising works under the Facebook platform, so it’s easy to integrate a marketing strategy that combines both sites.

Snapchat

Like Instagram, Snapchat is a platform that’s made specifically for mobile. Snapchat is especially popular with teens and millennials. The distinctive feature of Snapchat is that content is only visible for up to 24 hours. Creating Snapchat Stories is useful if you want to create excitement with a promotion or live event. You can also leverage the Geofilters feature, which lets you associate your content with a specific location. The Snapchat app has gradually expanded to include chat, messaging, image storage, events and media content. Snapchat is a powerful social media platform for presenting timely content that can be showcased with images and video.

Do You Need Them All?

Do you need to be on all of these social media platforms for business? The answer really depends on your business and the demographics of your customers. Facebook and Twitter are sufficiently large and broad that you could use them for any type of business. Instagram and Snapchat, meanwhile are more limited in that they’re geared to mobile and are image-based. One issue we’ve found with many business owners who engage in social media marketing is they are not consistent with using these free marketing platforms; meaning they start an account and post a few times and then don’t post again for a while. Consistency is key.

If you’re not certain about how to best use social media for business, the best approach is to test your results on different platforms. Facebook, Twitter, Instagram and Snapchat can all be very useful for marketing. The key is to find the sites that perform best for you and devise your own unique strategy for engaging with your followers.

If you’re looking to grow your business and need capital to help your growth plans, find out how invoice factoring can help you accomplish this goal.