Invoice Factoring Company Review: Riviera Finance

Riviera FinanceRiviera Finance Information:

  • Riviera Finance Headquarters: Redondo Beach, CA
  • Been in business since 1969
  • Number of Employees: 125
  • Credit Facility: $5,000 – $3,000,000
  • Advance: 75%-95%
  • Non Recourse Factoring: Yes
  • Contract Terms: Month to Month
  • No invoice factoring for Medical or Construction industries

Better Business Bureau Information:

  • BBB File Opened: April 2009
  • BBB Rating: A+
  • Accredited: No
  • Complaints filed with BBB: 1

About Riviera Finance:

Riviera Finance has been in business since 1969. They offer what they call a full-service invoice factoring service which includes Finance, Credit Services and Receivables Management. The specific services that fall under these categories are invoice factoring, credit services and factoring receivables management. According to Riviera Finance, their credit services can provide instant credit approvals online. Riviera Finance provides invoice financing and other types of asset based lending for small to medium-sized businesses with annual revenues of anywhere between $50,000 and $20,000,000. The lower level of this range provides a viable small business funding option to companies that wouldn’t qualify for a business line of credit at a bank because of a lack or profitability.

Riviera Finance is an invoice factoring company that has served over 1200 clients and manages 20,000 customer accounts per month. Although headquartered in California, they have offices all over the United States including major invoice factoring cities such as Seattle, Dallas, Atlanta and Miami, Florida.

They also have a handful of international offices. Riviera Finance is apparently further into Eastern Canada (they have an office in Toronto but are hiring for a Quebec office). The factoring company is even looking for a bilingual accounts receivable factoring representative to serve the French speaking population, according to Glassdoor.

Given the amount of transportation business in Canada (mainly trucking of natural resources but also import-export from ships crossing the Great Lakes) this appears to be a smart move for Riviera as they expand further into international markets like other invoice factoring companies, such as Bibby Financial Services.

Riviera Finance’s accounts receivable management services might be their most distinguishing factor. They offer invoice financing customers the ability to monitor their account information online, 24 hours a day, seven days a week, with their ROAM receivables management system. Riviera Finance is a member of the IFA, International Factoring Association.

Riviera Finance Review

The company offers invoice factoring services for a variety of industries including but it seems its focus is in the transportation industry (trucking specifically) given the depth of services they offer trucking companies including freight bill factoring. Further, they are a CH Robinson approved factoring company (as of June 24, 2016), which only adds to their credibility.2 CH Robinson is a Minnesota-based major transportation company and Fortune 500 member.3 Riviera Finance does not factor receivables for the medical or construction industries.

Reading through the Glassdoor employee reviews, the employees (current and former) of Riviera Finance appear to have generally good things to say about their experiences working there which we find provides important insight into the type of operation an invoice factoring company runs.

We really like that the Riviera Finance has been accounts receivable factoring since 1969. This should tell prospective small businesses something about their operations. We also like that they offer non recourse factoring. This is important because once the invoices are factored the credit risk of the account debtors (the business’ invoiced customers) stays with Riviera.

A main benefit of non-recourse factoring  is to remove the credit risk of the account debtor. Further, it also frees up time and other resources for your business needs. Remember, the factoring fees are higher with non-recourse factoring  because the factor assumes the risk of non-payment.

But be careful, there may be a loophole in some factoring agreements that allow the invoice factoring company to still come after the business for the advance amount in the event of non-payment of the invoice. So, factoring accounts receivable may not be risk-free to the business if you don’t read the fine print.

Riviera Finance Complaint

There was a complaint that was filed against Riviera Finance with the Better Business Bureau in April of 2016. One small business was a customer of Riviera Finance and apparently had a customer (account debtor) that had given them frequent trouble in the past with repayment of billed invoices.  According to the complaint, this was allegedly relayed to Riviera under the basic premise that this particular debtor was experiencing some financial hardships before the factoring agreement was signed.

The business apparently went ahead with an invoice factoring transaction with Riviera Finance (the business was advanced 80% according to the report). This would be on the lower end of typical invoice factoring advances (which are 92% according to their website). This could mean Riviera had some reservations with the account debtor. They probably wanted to mitigate some credit risk with a lower advance

Riviera Finance purports to utilize non recourse invoice factoring on their website which means that the credit risk of the account debtor’s invoice payment ultimately lies with them, the invoice factoring company. In this example, the account debtor did end up filing for bankruptcy and the business was allegedly sent a Notice of Default from Riviera Finance.

According to the business, there was apparently an ‘escape clause’ (term used by the business owner) in the factoring agreement that allowed the factor to come after the business-which they did. The business owner felt like he was being misled by Riviera. In the end, the business and Riviera Finance worked out the issue and the complaint was resolved to the satisfaction of the customer. You can learn more about the complaint by contacting the Better Business Bureau of Denver.

Should I Be Factoring Receivables with Riviera Finance?

It should be noted that this is the only complaint we saw (the complaint information goes back three years). The complaint appears to be an isolated incident from one of its satellite offices. Riviera Finance is in business for over forty years, meaning we feel comfortable factoring receivables with Riviera.

Other Invoice Factoring Companies like Riviera Finance:

 

 

 

1http://www.bloomberg.com/Research/stocks/private/snapshot.asp?privcapId=4321705

2https://www.chrobinson.com/en/us/Carriers/Get-Paid/

3http://beta.fortune.com/fortune500/ch-robinson-worldwide-208