When your customer demands credit and your supplier demands cash, you might need more than standard factoring provides.
A supplier assurance letter, written by Riviera Finance on your behalf, can convince your supplier to sell you the materials you need ON CREDIT, long enough to deliver a finished product to your customer. This transition credit can be a launching pad for your company’s success.
This powerful credit enhancement tool is simple. It works like this:
A. Your company receives a purchase order for goods from a reputable customer, Able Department Stores.
B. Riviera Finance approves Able for factoring.
C. Riviera Finance writes a letter of assurance to your supplier, Apex Materials, as follows:
a. Acknowledging the Able purchase order for finished goods (primarily using Apex materials)
b. Affirming Riviera’s role as factoring company in the transaction
c. Stating the amount owed to Apex (as per your direction)
d. Assuring Apex that, after the Abel transaction has been completed and factored, Riviera will directly transfer to Apex the amount owed
Although the Supplier Assurance isn’t a formal letter of credit on your behalf, it provides transaction security to the supplier, often enough to be a credit substitute and bridge the credit gap for future transactions. Ask your Riviera Finance representative for more information on how a supplier assurance letter can benefit your company.