Riviera Finance: A Fast Invoice Financing Company With Limited Transparency

Riviera Finance: A Fast Invoice Financing Company With Limited Transparency

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Riviera Finance is an invoice financing company that allows business owners to sell their accounts receivable for quick cash. The company has more than 25 offices in the U.S. and across Canada, making it a good option for business owners who want to deal with a representative face-to-face. It works with both recent startups and more established companies.

Any terms and factor rates listed below are accurate as of September 5th, 2019.

Riviera Finance: Should you apply?

Riviera Finance has been around since 1969, and it provides a pretty standard non-recourse invoice factoring service. This means that Riviera Finance purchases your invoices outright and becomes the owner of them, taking over control of account management details and issues with non-paying clients and giving your company a cash advance. By contrast, a recourse invoice factoring service requires you to buy back any of your invoices that your clients fail to pay, so the risk is shifted back to you.

All non-recourse invoice factoring companies offer this service, but what sets Riviera Finance apart is that you can deal with a representative in person if you wish, as long as you live near one of the company’s 25-plus offices around the U.S. and Canada. Just about any type of business can use invoice factoring, but it’s particularly common in certain industries, such as construction, transportation and manufacturing. Invoice financing may be a good option for businesses that either don't want to take out a traditional loan or might not qualify for one.

What does Riviera Finance offer?

Riviera Finance provides non-recourse factoring as well as FastCredit, which offers “instant, automated credit approval,” although the company doesn’t provide much information about what this actually is. Non-recourse invoice factoring is Riviera Finance’s primary business, and its service works similarly to that provided by other companies.

First, you’ll provide Riviera Finance with details about your customers. Riviera Finance will evaluate each of them individually, and provide you with a credit limit for each customer. You’ll then sign a contract, generally for about six months, during which period you can pick and choose which invoices to sell to Riviera Finance from the pre-approved list.

Once you sell an invoice (also called “factoring” the invoice, hence the name of this service), you’ll get the cash within 24 hours. The invoice will then become the property of Riviera Finance, and your clients will repay them, not you. Riviera Finance will assume all responsibility for getting those customers to pay the invoice. In the event those customers don’t pay, Riviera Finance takes the hit, not your business.

Like most invoice factoring companies, Riviera Finance is rather tight-lipped about the financial details, preferring that you apply for financing before providing any details about the costs. This is an unfortunate approach because it means you really can’t compare lenders properly without putting yourself into a high-stakes sales situation, such as possibly having a hard credit inquiry put on your credit report or just being unable to say “no” to pushy salespeople.

  • Loan Amount Range: N/A
  • Total Interest: N/A
  • Fees: N/A
  • Financing Terms: Contracts typically run for six months at a time
  • Repayment Options: Your customers send payment directly to Riviera Finance
  • Collateral Required: All accounts receivable
  • Personal Guarantee: N/A

Do you qualify for Riviera Finance?

It may be easier to qualify for invoice factoring services with Riviera Finance than with other invoice factoring companies, especially if you’re running a new business and don’t have much in sales volume yet. Many other factoring companies require you to be in business for several years or that you make several thousand dollars per month in sales before you can get access to these services. Riviera Finance, on the other hand, will serve startups as well as companies with up to $2 million in monthly sales.

Riviera Finance does not provide any information about whether it checks your personal or business credit score.

How to apply for Riviera Finance

You can apply for invoice factoring with Riviera Finance directly through its website. It can take up to seven business days to get your funding, but Riviera Finance may be able to issue a “preliminary approval” in as little as 24 hours.

You can also request a quote through Riviera Finance’s website by providing some basic details about your business, such as the type of business you operate, the payment terms for the invoices you send out (net 30 days, net 45 days, etc…), your monthly cash needs, whether or not you are currently factoring your receivables and copies of invoices that you’d like to sell to Riviera Finance.

Riviera Finance vs. other comparable lenders

The exact amount you’ll receive for your invoices varies, but Riviera Finance claims to advance a higher percentage than other invoice factoring companies. Riviera Finance will pay you up to 95% of the value of your invoices, compared to 80% to 90% of the invoice value with Paragon Financial, 85% to 90% with BlueVine and 90% with TCI Business Capital. These other companies will pay you back again (minus a cut) depending on how long your client takes to pay the factoring company back, but Riviera Finance doesn’t disclose whether it does this or not.

Riviera Finance doesn’t require you to have a certain amount of sales volume or be in business for a certain number of years. The company will work with your business as long as you’ve sent out at least a few invoices to verify that you are, in fact, in business and are owed money from clients.

This stands out in contrast to other invoice factoring companies, which often require you to meet sales volume or time-in-business requirements before you’re eligible for invoice factoring. For example, BlueVine requires that you’ve been in business for at least three months and earn the equivalent of at least $100,000 per year in sales before you’re eligible with them, and TCI Business Capital requires that you make at least $50,000 per month in sales to qualify.

The bottom line

Riviera Finance is typical of other invoice factoring companies, with the exception that it offers in-person offices where you can work face-to-face with representatives. It’s not a bad idea to check what terms the company can offer you if you decide that your business would benefit from invoice factoring services, but keep in mind that it’s only one option among several that provide scant details unless you contact them directly. Our advice is to check your rates and terms with a few companies that resonate with you to find the best deal for your situation, whether that be with Riviera Finance or not.

Justin is a Sr. Research Analyst at ValuePenguin, focusing on small business lending. He was a corporate strategy associate at IBM.

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