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.

There is another choice to eliminating your credit risk for unpaid freight bills and that is by choosing a non recourse factor. By selecting a non recourse factor they assume the credit risk upon purchase of the invoice. The carrier then obtains immediate cash flow on the invoice and also eliminates credit risk.

Trucking companies choose not to go to a non recourse factoring because it is considered more expensive. This become a calculated decision for them, depending upon their tolerance of risk and their resources to collect invoices.

Riviera Finance has 34 carriers with varying outstanding balances with Network F.O.B. and they will benefit from Riviera Finance’s non recourse factoring program. Now, our skilled staff will roll up their sleeves and by various means begin collecting on these unpaid freight bills.

Riviera Finance has been in business since 1969 and provides full service factoring on a non-recourse basis. We always have a vested interest in the credit decision and collection of an invoice.

Invoice Factoring Gains Popularity as a Short-term Working Capital Source

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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.