Recourse vs Non-Recourse Freight Factoring for Trucking Success

When it comes to cash flow solutions in trucking, the debate of recourse vs nonrecourse freight factoring is a crucial one. Both options give carriers faster access to funds by converting invoices into immediate cash, but they differ in risk and responsibility. With recourse freight factoring, the carrier must repay the factor if a broker or shipper fails to pay. This often means lower fees, making it attractive for trucking businesses confident in their clients’ credit. Nonrecourse freight factoring, on the other hand, shifts the risk to the factoring company, offering carriers greater protection when a client defaults, though at a higher cost.

Understanding the difference between recourse vs nonrecourse freight factoring helps trucking companies choose the right path based on their financial priorities and tolerance for risk.

Read more: https://www.saintjohncapit...