For businesses that need funding, a commercial loan is always an option to consider. Having healthy cash flow is essential for any business, and a commercial loan can help you purchase essential inventory and invest in marketing. A loan might also help you survive lean times when not much cash is flowing in. The realm of commercial finance, however, is often difficult to navigate and it’s not always easy to get the funding you need. Issues such as your personal credit and the length of time you’ve been in business can make it hard to get a business loan. One alternative type of financing to consider is invoice factoring.
Invoice Factoring: An Alternative to Traditional Commercial Loans
With a conventional commercial loan, a bank lends you money and you pay it back with interest. Invoice factoring works a little differently. In this case, the factoring company buys your accounts receivable. This isn’t credit in the usual sense because the money you receive is based on actual invoices that are owed to you. The invoice factoring company in this scenario is more interested in the credit rating of your customers than yours because they’ll be collecting the invoices in the future.
The amount of money you can get from invoice factoring depends on what is owed to you. You can also choose how many customer invoices you want to submit for factoring. This is an efficient system that lets businesses enjoy better cash flow in exchange for paying a fee to the factoring company. If you think invoice factoring might be a viable solution for you, one of the oldest and most reliable factoring companies is Riviera Finance.
How Riviera Finance Can Help Your Business
Riviera Finance is a company that’s been providing commercial finance solutions to businesses since 1969. With more than 25 locations in the U.S. and Canada, Riviera Finance is in a position to help all types of businesses improve their cash flow situation. Here are some of the benefits of using Riviera’s invoice factoring services.
Invoice Factoring with Riviera: A Simple Process
- Unlike conventional commercial loans, invoice factoring doesn’t rely heavily on your personal credit. This makes it a good option for newer businesses or for people whose credit scores aren’t perfect. Even if you have good credit, invoice factoring is worth considering as it’s a way to improve cash flow without taking on debt.
- Invoice factoring gives you the freedom to grow. How could you make use of enhanced cash flow? Perhaps you could purchase some state-of-the-art equipment to provide faster service. You might hire additional staff to make your business more efficient. There are many ways that getting cash up front helps you expand and take your business to the next level.
- Enjoy favorable relationships with suppliers. With more cash on hand, you become eligible for discounts for many products and services you need to run your business.
- Meet your financial obligations. Invoice factoring makes it easier to pay your bills, stay current with payroll and get rid of bad debt. This eases your mind and improves your own credit rating and overall financial situation.
- Save time and reduce the expenses associated with collecting payments. Rather than expend precious time and resources pursuing payments, you can refocus on more productive activities such as marketing.
Follow a few simple steps to start enjoying the benefits of invoice factoring.
- Become a Riviera Client
- Factor Your Invoice(s)
- Get Paid in 24 Hours
Get started today and have cash tomorrow!
This is a simple and hassle-free way to get cash up front for your invoices. If you’re considering a commercial loan to improve your cash flow situation, it’s worth looking into invoice factoring as an alternative. Riviera Finance has customized commercial finance plans for all types of businesses.