NON RECOURSE FACTORING
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.
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.