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How does invoice factoring compare to an accounts receivable line of credit?

Invoice Factoring FAQs

Accounts Receivable Line of Credit vs. Invoice Factoring

An accounts receivable line of credit and a non-recourse invoice factoring line both provide business financing by converting accounts receivable to cash. An AR line of credit is a loan secured by accounts receivable as collateral, whereas non-recourse invoice factoring is an outright purchase of accounts receivable for cash.

Because an accounts receivable line of credit is a loan, the borrower must have the financial ability to repay. This form of business financing requires:

  • Strong Business Financials
  • Positive Cash Flow
  • Established Business Credit
Cash Flow Analysis | Meet Business Expenses

In a non-recourse invoice factoring line, the factoring company bills the client’s customer directly, and secures its position by the customer’s credit rather than that of the client.

A full-service factoring company provides credit services and accounts receivable management in addition to business financing. Our services include new customer credit reviews, invoice processing, and collection services.

The invoice factoring company is typically more involved with the accounts receivable, it usually makes more cash flow available to the client business. Because of the higher risk and higher level of services, the cost of non-recourse invoice factoring is generally higher than that of an accounts receivable line of credit.

About Riviera Finance Invoice Factoring Company

Find out more about non-recourse invoice factoring with Riviera Finance. As an alternative to an accounts receivable line of credit, it’s a great form of business financing without debt and without the need for extensive business history. Over 10,000 companies have turned to Riviera Finance for their working capital needs.

Our Process

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Complete form & become a Riviera client

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You deliver your products or services

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Send your invoices to Riviera Finance

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Get Paid

Riviera verifies & pays you within 24 hours

Benefits of Choosing Riviera as Your Factoring Company

Speed of Delivery

Our process is built around immediate response to client needs, and the fastest cash turn around in the industry.

Dependable Service

We have 125 skilled employees at key locations across the U.S. approving credit, processing invoices, and wiring.

Maximum Cash Advances

We pay the highest cash advances in the industry and strive to fund our clients without holding reserves.


Riviera’s Online Account Management system, your accounts are available online 24/7.


Simple applications, no set-up fees, and no long-term contracts make getting started with Riviera easy.

Personal Service

Hearing what our clients need and consistently delivering it builds trust and a satisfied customer relationship.


To best serve our diverse client base, Riviera has dedicated support, in your time zone, that speak your language.

Financial Stability

You can feel secure knowing that funds are always available for your next funding.

Recent Fundings



Factoring Line


This healthcare staffing business had been operating for a year and was looking to increase working capital to support rapid growth. Initially, they got an MCA loan. The decision caused a reduction in working capital because of high monthly payments and hindered their growth.

Their accountant suggested Riviera to support their working capital needs and future growth with Accounts Receivable Factoring. Riviera Finance was able to payoff the existing loan and provide needed working capital to meet their growing payroll.


Transportation Broker

Factoring Line


Established in 2005, this company needed to maximize cash flow to handle seasonal increases in load volume and a surge in new contracts. Riviera Finance quickly established a full-service factoring line which provides free credit checks and converts invoices to cash within 24 hours. The client is funded twice a week on a non-recourse basis. As a value-add, Riviera Finance prepares and mails checks to the client’s carriers. Between April and June, this client doubled its factored volume and continues to experience healthy growth.


Specialty Wholesaler

Factoring Line


A specialty wholesaler that distributes exclusively to assisted living facilities and the health club industry was looking for a way to grow their business without creating debt. They also needed to find a way to extend large credit lines to customers without risking personal assets. Riviera offered them a way to accomplish both of these objectives. Now after factoring for over a year with Riviera, this company relocated to a state-of-the-art warehouse facility. They are on target to do $5MM in sales, easily meeting payroll and forming a wholesale subsidiary to increase business and profit margins further.

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