What is Non-Recourse Factoring?

Non-recourse factoring is similar to recourse factoring in the sense that they both provide your company with the funds to grow so you don’t have to wait on slow-paying clients. There is one big difference though. Non-recourse factoring allows your business to relax and not worry about whether your customers will pay or not. Non-recourse factoring is an additional cost that alloys our business to pull away from responsibility.

Luckily, the process for getting approved for non-resource factoring is the same as recourse factoring. The factoring company will look into your clients, and not your creditworthiness. Once you are approved within 3-5 business days you can begin factoring your invoices.

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Non-Recourse Factoring Companies Provide Security

Non-recourse factoring companies will purchase your invoices for a fixed rate with a held reserve. Once your customer pays, the reserve is released to you minus fees. If for some reason your client does not pay the factoring company for their invoices, the freight factoring company will take the hit. Non-recourse factoring protects your business from major loss. If your trucking company decided to do recourse factoring, your business would have to cover the costs of the lost invoices that were not paid.

Non-recourse factoring companies are great for businesses that wish to have added security in their finances. If your business is worried about whether your clients will pay and want to avoid any additional fees, non-recourse factoring is the way to go. This allows your business to be able to pay for other needed purchases while you would still be waiting to get paid by your customers.

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Discover How a Non-Recourse Factoring Company Can Meet Your Business Needs

Our factoring marketplace can get your business the funds it needs to grow. We listen to what it is you are looking for in a non-recourse factoring company. Then we look into extensive marketplace and decide which non-recourse factoring company is the best fit for you. We then put you into direct contract with them, free of charge.

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Types of Businesses that Benefit from Non-Recourse Factoring

While non-recourse isn’t for every business, there are many that can take advantage of it. Non-recourse factoring companies can provide a safe zone for businesses with a large amount of different clients. If a company is in urgent needs of funds but does not want to take a risk by having a recourse factoring plan, non-recourse factoring is a great option.

Imagine this, your business gets one of the biggest orders it has ever had. You don’t want to let this one slip away, but you don’t have the funds to cover the order. You look to a factoring company to get the funds to cover the order and ship to the client. Without thinking, you sign up for recourse factoring. Next thing you know, your client backs out of paying for their sale. You are left there to pay the factoring company for the money that they fronted plus fees.

Non-Recourse Factoring Companies for Trucking

Trucking companies also utilize non-recourse factoring quite often. Since trucking companies deal with many different clients, this type of factoring can be a good fit. Your freight company can use non-recourse factoring to grow your business without the risk of clients not paying.

Some other companies that can benefit from non-recourse factoring are manufacturing, oil and gas, clothing, and more.

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Is Non-Recourse Factoring Right for Your Business?

We can get your business a non-recourse factoring program today.