Benefits of Non-Recourse Factoring

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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.

 

 

Questions to Ask

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imageWriting for Forbes, Ty Kiisel poses three short questions “any business owner should ask” before borrowing money.  The same goes for factoring.

  1. Do you know how you’re going to use the capital?
  2. Will the extra capital have a positive impact on the business?
  3. Do you know the numbers?

For the whole article, click here.

The Riviera Finance model was built in 1969 with these questions in mind.  That’s why we invest heavily in our local infrastructure:  to help business owners assess their needs for capital and factoring services, and to work face-to-face daily with our clients to maximize their return on investment.  Factoring isn’t for every business, but it can provide powerful leverage to companies with opportunities for growth if used properly. Your local Riviera Finance representatives are available to discuss how our services can contribute to the success of your business.

Florida Small Business Development Center Access To Capital

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imageOn Friday, August 1, The Florida Small Business Development Center at Florida Gulf Coast University will be hosting the Access to Capital Fair, an inaugural event to help small business owners explore various funding options.  According to the FSBDC, attendees “will learn about SBA loans, traditional bank loans, factoring, angel investors, crowdfunding, crowdlending, and other financing options.”  For more information about the event, click here.

Riviera Finance will sponsor the breakfast at this important event.

The Small Business Development Centers continue to fill a vital role in supporting the development and growth of businesses across the United States, through their extensive network of counselors, directors, and advisors who provide a wide range of consulting and advisory services.  Visit Riviera’s resource page for the SBDC locations that can serve you best.

Riviera Finance Clients Benefit from Non-Recourse Factoring

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Several transportation clients have benefited from Riviera Finance’s non-recourse factoring programming when the transportation brokers, Great Bear Transport, Quebec, Inc, and Tropical Logistics went out of business. The transfer of credit risk was assumed by Riviera when invoices were purchased from the carriers on a non-recourse basis. Riviera then assumed the credit loss.

Often times the value of non-recourse factoring is seen as less important when given a choice of a lower rate on a recourse basis. In some instances that argument may be valid, but such a choice requires a business to analyze the credit risk and evaluate the customer’s credit worthiness beyond just making an assumption.  As well, it may be realized that non-recourse factoring is only nominally more expensive, if at all, and having what amounts to insurance coverage can provide more than just peace of mind.

imageWith 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 assumption of credit risk. These are very tangible benefits of Riviera Finance’s non-recourse factoring program that demonstrate a vested interest in the accounts purchased and also a deep rooted understanding on how difficult it is for a small business to absorb a credit loss.

Ohio Oil and Gas Association Meets in Columbus

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Last week’s Ohio Oil and Gas Association Annual Winter Meeting in Columbus, Ohio was well attended. Here, Jason Smith of Riviera Finance is attending the booth and discussing how factoring can play a role for contractors servicing the energy producers. 

What was realized from Riviera Finance attending the trade show is that there is a growing demand for contractor services by the energy companies as they increase production. While this is good news for the industry, many contractors are having a tough time with cash flow to run their business when waiting for payment from the energy producers.

Riviera Finance believes it can provide a solution to the contractors servicing the energy producers by factoring their accounts on a non recourse basis. Factoring accounts can increase the cash flow to the contractor allowing them to meet the increased demands of the energy producers.