Non Recourse Factoring Helps Truckers

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Non recourse factoring benefits Riviera Finance trucking clients when freight broker Network F.O.B. announces in an email that they are going out of business.  For many other truckers, this is bad news because it leaves then with unpaid freight bills.

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Unfortunately, this burden of unpaid freight bills is not removed from a trucker if they have decided to sell their invoices to a recourse factor. The carrier will still be responsible and probably have to buy back the invoices in 90 days. This can be of great concern to the small trucker, because it might not be affordable to them.

There are options to try and collect on unpaid freight bills. A trucker can file on the $75,000.00 surety bond, but this will be quickly depleted. Another option is for the trucker to make a claim to the shipper for payment as the carrier of record, but this is a challenging process. An attorney? Costly. A collection agency? Expensive. A write-off? Likely.

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Invoice Factoring as a Backup Source of Cash

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How to Use Invoice Factoring as a Backup Cash SourceConsider invoice factoring with Riviera Finance as a backup source of cash flow.

“Waiting to get paid” is the not-so-new normal in the world of business.  In the U.S., companies take an average of 38 days to pay their bills.  In some industries, the wait is much longer.

But to the business owner, the waiting isn’t the hardest part.  Guessing when the customer will actually pay is the real challenge.

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Small Business Lending at Highest Level Since 2007

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The Thomson Reuters/PayNet Small Business Lending Index rose to 120.4 in October, its highest level since August 2007.  This is generally seen as a positive leading indicator for the U.S. economy, as small businesses step up their borrowing to handle growth in orders.  Supporting this trend, PayNet also reports that delinquencies as a percent of loans set a record low in October.

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When Selling Receivables Makes Sense

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Invoice Dollar Bill --- Image by © Images.com/CorbisAn alien from an all-cash planet would gaze in wonder at the trade credit system that runs the Earthly economy.  Let’s review:

Jack Brown invests his life savings to open a surfboard manufacturing business, MI Board, Inc.  It does well, attracting the interest of the media, surfers and retailers.  A few small shops in California put his boards on consignment.  They turn some heads, win some competitions, and MI lands $300,000 in initial orders from Becker, RonJon’s and HSN.  Cool.

After celebrating, Jack reads the purchase orders from his new customers.

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