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WHY DO COMPANIES USE INVOICE FACTORING

Optimize Your Cash Flow and Manage Expenses with Invoice Factoring

Why Do Companies Use Invoice Factoring?

Invoice factoring is a type of alternative financing that helps businesses improve their cash flow situation. It can be used in place of or sometimes in addition to other types of financing such as equipment financing, unsecured loans, and venture capital. Companies use the cash they receive from factoring for a variety of reasons, including:

  • To make payroll
  • To pay rent
  • To buy inventory or raw materials
  • To hire more employees
  • To take on new orders/clients
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Our Process

STEP 1

Apply

Complete form & become a Riviera client

STEP 2

Service

You deliver your products or services

STEP 3

Send

Send your invoices to Riviera Finance

STEP 4

Get Paid

Riviera verifies & pays you within 24 hours

Why Business Owners Consider Factoring Services

As a company grows and experiences an increased need for cash, they will likely seek out various forms of financing. Below are some of the most common reasons that we see business owners consider factoring services over other forms of funding.

  1. Slow Paying Customers or Long Payment Terms
  2. Need Scalable Financing
  3. Have Bad Credit
  4. Are a New Company
  5. Didn’t Get Approved for a Loan
  6. Growing Quickly
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Benefits of Invoice Factoring

Riviera Finance works with a variety of companies in the US and Canada to help them maintain cash flow and meet weekly financial demands.

Immediate Cash

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

Quick Credit Checks

Receive Credit Checks on Your Customers

Low Risk

Competitive Rates and No Hidden Fees

Financial Freedom

No Debt is Created

Bad Debt Protection

Riviera takes on all the credit risk!

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Complete the form for a Free Consultation.


Factoring Advantages and Disadvantages

While there are many positives to invoice factoring, there are also downsides, depending on the nature of your small business and the factoring partner you choose to work with. Here, we’ll break down the pros and cons of invoice factoring.

Pros of Factoring

  • Immediate access to cash for your business
  • Easier and faster approval than traditional bank lending
  • No impact on your credit score

Cons of Factoring

  • Reduced profit margins for your business
  • Hidden costs and fees from bad factoring companies

Let’s take a closer look at how invoice factoring works so you can decide if it’s worth considering for your own business to help with cash flow and more.

How Invoice Factoring Works in 6 Steps

Factoring is a way to turn unpaid invoices into cash for your business today. Here is how invoice factoring works in 6 easy steps. 

  1. The factoring company establishes a credit limit on the customers you submit for invoice factoring
  2. You deliver your product or service as you normally would
  3. You send your invoices directly to the factoring company
  4. The factoring company verifies that the product was received or service performed
  5. You receive your cash from factoring company
  6. Your customers pay the factoring company directly

Some factoring companies require you to factor all of your invoices and others do not.  So, if this flexibility is important to you, be sure to ask the factoring company before signing up.

As you can see from the above steps, invoice factoring is quite simple. Once you set it in motion, it’s actually quite a bit simpler to factor your invoices than to bill clients the traditional way. The factoring company does a great deal of the work for you since it functions as your back-office billing and accounts receivable department.

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What Our Customers Are Saying

The personnel I deal with on a regular basis at Riviera are very friendly and extremely helpful. If I call with a question or concern, they are prompt in assisting me.

Marjie EllisonDallas, TX

For financing it can't get much easier. Our company has been growing for several years and the growth rates could not have been achieved without the additional financing that Riviera has provided.

Stan ShawPhoenix, AZ

Riviera helps keep a consistent cash flow and help us manage our receivables. They also help keep us from doing business with customers whose credit level is substandard.

John SavastenBirmingham, AL

Not only am I happy that I have a steady flow of cash when I need it but I am treated very well by the people who work there.

Robert GrayPortland, OR

Riviera is the backbone of my business by me knowing I always have a little something tucked away and that I can stand on my own two feet. Not only are they there to help, but they have become friends and family.

Linda VillanuevaBaltimore, MD
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