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 Non
Recourse Factoring: Factoring
invoices is one of the most popular
ways small business owners as well
as mid sized business owners
maintain the cash and working
capital they need to operate. In the
trucking industry there are a whole
lot of factoring companies - some
offering recourse factoring - some
offer non recourse factoring.
What's the difference between
recourse and non-recourse factoring?
Two things- first is the cost
for a non recourse factoring
arrangement is much higher. Non
recourse factoring lenders are
taking the entire risk that if one
of your customers doesn't pay - they
eat the invoice - you don't. Yes it
provides some comfort for customers
selling invoices - but the costs
will be much higher in fees, per
invoice, and discount rate.
Recourse factoring is more common
and less expensive - the reasons are
on a recourse factoring arrangement
if the customer doesn't pay - the
factoring lender takes the money
back from your AR account.
Sometimes non recourse factoring
deals make sense. It depends on a
number of variables. We work with
both recourse and non recourse
factoring lenders. Each situation is
different and based on your specific
needs.
Brad Hoffman has been dealing with
factoring lenders for over twenty
years and has the knowledge and
connections to match your company to
the right lender. Give Brad a call
to discuss your non recourse
factoring needs at 614-203-8021 |
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