Recourse vs. Non-Recourse Factoring: What’s the Difference?

Factoring your freight bills begins by knowing the differences between recourse and non-recourse factoring. When choosing the truck factoring route that best suits your business, you may be wondering:

  • What happens if my client doesn’t pay, or can’t pay an invoice I sold to a factoring company?
  • Who is held accountable for their non-payment?

The answers to these questions are dependent upon your trucking company’s decision to use a recourse or non recourse factoring company. Many factoring companies offer both options. The first thing to keep in mind is that a non-recourse program will have slightly higher fees than recourse. Check out the table below to compare the options.

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