Non-Recourse Factoring Services
Do you need a guaranteed alternative financing option to cover your trucking company’s expenses? Non-recourse factoring ensures that you’ll always get paid no matter what. By factoring with non-recourse, if your customers don’t pay the invoice, the factoring company takes the loss. Non-recourse factoring is best for small trucking companies that haul for a variety of shippers and brokers, and would take a big hit by non-payment.
You get the cash you need, even if your customers fail to pay
Slow and non-paying customers are a risk in any industry. When you choose a non-recourse program , the trucking factoring company assumes the risk of nonpayment so you can keep your working capital even if your clients fail to pay outstanding invoices.
You will always know what you are paying thanks to flat rates
There are no hidden costs with a non-recourse option. Flat fee factoring prevents you from paying more no matter how long your freight bill remains open and means that you can easily incorporate your factoring costs into your operating budget.
Industry-low rates save you money
We work with freight factoring companies nationwide that offer competitive, industry-low rates for non-recourse freight factoring. You will have more cash on hand without adding to your debt and without limits on how to spend it. If you’re looking for the best factoring rate out there, we know where to find it.
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How Can Non-Recourse Factoring Help Your Trucking Company?
If advances within hours and a risk-free guarantee have not already swayed you, consider the following additional benefits of a non-recourse freight factoring relationship:
Factor your freight invoices from copies
Don’t waste time and money sending originals. Only a clear copy of the freight bill is required. Scan or fax a copy to receive your funds.
Control your factoring costs by factoring when and how much you want
There are no minimum or maximum amounts to factor, so you can submit only the freight bills necessary to maintain your cash flow on the road.
Use fuel benefits to keep your trucks running
Many non-recourse factors offer discount fuel cards that you can use at thousands of refueling stations nationwide. Monitor your drivers’ spending and take advantage of additional discounts from refueling partners.
Another option is a fuel advance – the factoring company advances a smaller portion of the freight bill when you pick up the load, instead of when you deliver, so you can pay for the gas to get to your destination. Typically, fuel advance rates range between 40% – 50% of the freight bill value.
Save money and time with back office support & free credit checks
Don’t waste your valuable resting time trying to collect from your customers or qualify new ones. Our freight factoring partners offer credit and background checks when you begin hauling for a new customer and can spearhead collections efforts. You can track their progress using their online reporting services, which are available 24/7.
It’s important to know what to look for when choosing a freight factoring company. There are lots of factors our there, so it’s a smart move to get multiple quotes. We have the ability to do the legwork for you to find low fees and competitive programs that fit your exact needs. Even if you’re currently with a freight factor, contact us to see if we can beat your current factoring deal!
The Non-Recourse Freight Factoring Process
Here is how a non-recourse freight factoring transaction would look with a $10,000 freight bill:
- Haul the load and submit the freight bill to the factoring company
- Freight factoring company verifies freight bill
- Factoring company charges a 3% flat fee ($300)
- Your trucking company receives $9,700 up front.
- The freight factoring company attempts to collect $10,000 to close the freight bill – and the trucking company keeps the $9,700.
Please keep in mind that factoring fees vary. Non-recourse factoring fees are based on volume and can range anywhere from 2%-5%. Due to the added risk, non-recourse rates are somewhat higher than recourse rates.Start Here
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Non-Recourse vs. Recourse Factoring for Trucking
Recourse freight factoring is another financing option that works for many trucking companies. There are two primary differences between recourse and non recourse factoring:
- 1- Recourse factoring fees are typically lower than non-recourse fees. Recourse factoring fees also vary by volume, but average between 1.5 – 3%.
- 2- With recourse factoring, trucking companies assume the risk of non-payment. If a freight bill is not paid within the recourse period (typically 90 days), the trucking company may be required to repay it.
If you work with steady-paying and otherwise reliable customers, recourse factoring could be the right option for your company. We can help you find the right program to meet your needs. Learn more about the differences between recourse and non-recourse factoring.
Don’t let poor cash flow keep your trucks sidelined. Let Factor Finders get you started with a competitive non-recourse factoring program today and drive on!
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