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


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.

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