Riviera Finance May 24, 2016 No Comments
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Up until the 1970s, invoice factoring was a little-known source of small business financing in the U.S. Since then, however, accounts receivable factoring has grown steadily as a source of daily cash flow, accounting for over $150 billion in business in 2015. As a pioneering factoring company with a history that spans five decades, Riviera Finance has been at the forefront of ushering factoring into the mainstream as an alternative to traditional small business loans and an effective way for businesses to increase and predict working capital.

Because barriers to entry are low and industry information is readily available, hundreds of small factoring companies and alternative lenders have been formed in recent years and factoring no longer has the mystique it once had. Articles, websites, associations, and other sources of information are prevalent, and the industry has a heavy advertising presence. And while factoring is a risky business, it can still be profitable for experienced factoring companies.

More importantly, invoice factoring is a cost-effective way for small businesses to manage their daily cash flow needs.

There are a number of factors that make factoring cost-effective rather than costly. For one, non-recourse factors like Riviera Finance will guarantee credit on factored receivables, thereby eliminating bad debt. Full-service factors also offer helpful services within their rates, serving as a back office of sorts by pulling and approving credit, making collection calls, processing invoices, and more. Such services allow for a significant reduction in administrative expenses.

Riviera Finance invites you to learn more about how factoring can help your small business in uncertain economic times by using your accounts receivable to increase and manage cash flow.