The History of Factoring
Invoice factoring is a type of business financing that's an alternative to conventional business loans. A factor buys…
Also known as accounts receivable financing, factoring is a transaction that involves selling receivables to a factoring company. The receivables factoring company pays the business owner (you) for your outstanding invoices. Then, the factor is paid by your customer.
Accounts receivable factoring is used to smooth out the gaps in your cash flow caused by slow-paying customers. It’s a debt-free way to get paid sooner by unlocking the cash tied up in unpaid invoices. Since it’s not a loan, there is nothing to repay.
Rather than waiting 30, 60 or 90 days for payment from a customer, factoring accounts receivable helps your business get paid immediately for goods and/or services you’ve already provided.
Riviera Finance is a leading accounts receivable factoring company for more than 50 years and has helped many business owners with payroll funding and cash flow issues.
Follow Us