Cash flow issues are one of the most significant challenges small business owners face. Whether it’s waiting for slow-paying clients, covering payroll, or purchasing inventory, managing finances can often feel like an uphill battle. Traditional bank loans and lines of credit can be difficult to obtain, leaving many small businesses searching for alternative funding solutions.
Accounts receivable factoring is a practical and fast way for small businesses to access immediate cash by leveraging their unpaid invoices. Instead of waiting weeks or even months for clients to pay, businesses can receive working capital almost instantly. Riviera Finance, a trusted leader in invoice factoring, has been helping businesses for more than 50 years by providing quick and reliable funding solutions that keep operations running smoothly.
What Is Accounts Receivable Factoring?
Accounts receivable factoring, also known as invoice factoring, is a financial service that allows businesses to convert unpaid invoices into immediate cash. Instead of waiting for customers to pay, a business sells its outstanding invoices to a factoring company—like Riviera Finance—at a discount. The factoring company then advances a significant portion of the invoice value, often up to 90%, and takes responsibility for collecting payment from the customer. Once the customer pays the invoice, the remaining balance, minus a small factoring fee, is released to the business.
Unlike traditional loans, invoice factoring doesn’t require collateral, and it doesn’t add debt to a company’s balance sheet. Instead, it’s a flexible financing option based on a company’s accounts receivable, making it ideal for businesses that need immediate cash flow without the long approval process associated with bank loans.
How Accounts Receivable Factoring Benefits Small Businesses
Accounts receivable factoring provides multiple advantages, making it an essential financial tool for small businesses looking to improve their cash flow and stability.
Improved Cash Flow
With accounts receivable factoring, businesses no longer need to wait 30, 60, or even 90 days for customer payments. This means immediate working capital to cover day-to-day expenses, invest in new opportunities, and maintain smooth operations.
No Need for Business Loans
Unlike traditional financing, invoice factoring, when non-recourse, does not involve debt. There are no interest rates or repayment schedules to worry about, making it a low-risk financing option.
Flexible Growth Financing
The more invoices a business generates, the more funding it can access. This means that as the business grows, so does its available working capital, making factoring a scalable financing solution.
Credit Protection
Riviera Finance offers non-recourse factoring, meaning we take on the risk of non-payment if a customer defaults. This gives businesses added security and protection against potential bad debt.
Business Stability & Scalability
Small businesses often struggle with inconsistent cash flow, making it difficult to plan for growth. Invoice factoring provides a steady stream of cash, allowing businesses to confidently meet payroll, pay suppliers, and reinvest in their operations.
Related: How can accounts receivable factoring improve my bottom line?
Who Can Benefit from Accounts Receivable Factoring?
Accounts receivable factoring is widely used across various industries, particularly those that deal with slow-paying clients. Businesses that benefit the most from factoring include:
Trucking & Transportation
Factoring helps trucking companies cover fuel, maintenance, and payroll costs while waiting for freight payments.
Staffing Agencies
Payroll obligations can’t wait for slow client payments. Factoring ensures employees get paid on time.
Manufacturing & Wholesale Distribution
Businesses that need to purchase raw materials or maintain inventory levels can use factoring to stay operational.
Construction & Contractors
Factoring bridges the cash flow gap between project completion and client payments.
Service-Based Businesses
Companies in consulting, maintenance services, and IT can benefit from factoring to maintain operational expenses.
Related: What industries benefit from invoice factoring?
Why Choose Riviera Finance?
With decades of experience and a reputation for excellence, Riviera Finance is one of the most trusted names in the invoice factoring industry. Here’s why small businesses choose Riviera Finance:
- Trusted Industry Leader – With over 50 years of experience, Riviera Finance has built a strong reputation for helping businesses overcome cash flow challenges.
- Non-Recourse Factoring – Unlike many factoring companies, Riviera Finance offers true non-recourse factoring, meaning they absorb the credit risk of non-payment, giving businesses peace of mind.
- Fast Approvals & Funding – Businesses can receive cash in as little as 24 hours after invoice submission, providing a quick and reliable financial solution.
- Exceptional Customer Service – Riviera Finance provides dedicated account managers who offer personalized service and expert financial guidance.
- Nationwide Coverage – With offices across the United States, Riviera Finance supports businesses of all sizes and industries, no matter their location.
Steps to Get Started with Riviera Finance
Getting started with Riviera Finance is a straightforward process designed to provide businesses with fast and hassle-free funding.
- Submit an Application – The first step is to fill out a simple application with basic business and financial information.
- Invoice Verification – Riviera Finance verifies the invoices to ensure they are legitimate and qualify for factoring.
- Receive Funding – Once approved, businesses receive up to 90% of the invoice value within 24 hours.
- Riviera Finance Collects Payment – Customers pay directly to Riviera Finance, and once the invoice is settled, the remaining balance (minus the factoring fee) is released to the business.
Next Steps to Financial Freedom
For small businesses struggling with cash flow, accounts receivable factoring is a game-changing solution. Instead of waiting for clients to pay, businesses can access immediate funding to keep operations running smoothly, meet financial obligations, and seize new opportunities.
With Riviera Finance’s trusted expertise, non-recourse factoring, and quick funding process, small business owners can eliminate cash flow concerns and focus on growth.
If you’re ready to take control of your cash flow, contact Riviera Finance today for a free consultation.
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Recent Fundings
ILLINOIS
Staffing
Factoring Line
$300,000
Staffing – Illinois
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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.
COLORADO
Transportation Broker
Factoring Line
$700,000
Transportation Broker – Colorado
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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.
FLORIDA
Specialty Wholesaler
Factoring Line
$350,000
Specialty Wholesaler – Florida
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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.
