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Trucking, Logistics, Carrier Factoring ServicesRecourse Factoring: Recourse factoring means any invoice your lender purchases from you is going to be paid either by your customer - or you if the customer doesn't pay. Because you are taking the risk as to whether or not the receivable will be paid - recourse factoring is much cheaper - and far more common in the trucking industry.

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.

Several years ago there was a run on non recourse factoring as carriers worried about big customers - especially in the automotive space - going under. The rates for those non factoring agreements reflected that risk and many carriers ended up getting crushed because of those rate discounts.

Recourse factoring is the most common and least expensive. We provide contacts and knowledge in the factoring industry that few other CPA firms can match. We will get you the best factoring discount rates available.

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