Recourse Factoring For Mid-Size Trucking Companies
What is Recourse Factoring?
Recourse factoring is a type of invoice factoring where the factoring company assumes the responsibility of collecting payment from the client, but the business is ultimately held responsible for the debt if the client fails to pay. This means that if the client defaults on the invoice, the business must buy back the invoice from the factoring company and attempt to collect the debt from the client themselves. Recourse factoring is the most common type of invoice factoring and is often chosen by businesses that want to minimize factoring costs. By opting for recourse factoring, businesses can benefit from lower fees while still improving their cash flow.
Recourse Factoring Agreement For Mid-Size Trucking Companies
We offer more options for mid-size trucking recourse companies to allow for greater flexibility, provided by various factoring companies. These include both recourse and non-recourse freight factoring– whichever one suits you best. We want mid-size trucking companies who work with us to have the most control over their money.
Recourse vs. Non-Recourse Factoring
The main difference between recourse and non-recourse factoring is which party is ultimately held responsible for customer nonpayment. In recourse factoring, the business is responsible for the debt if the client fails to pay, while in non-recourse factoring, the factoring company assumes most of the risk of nonpayment. Non-recourse factoring typically has higher fees to compensate for the additional risk the factoring company takes on. Recourse factoring, on the other hand, has lower fees and may be faster to fund. This makes recourse factoring an attractive option for businesses looking to pay lower fees and receive quicker access to funds.
Benefits of Factoring for Trucking Companies
Factoring can be a powerful tool for trucking companies to improve their cash flow and manage their finances. With accounts receivable factoring, trucking companies can sell their outstanding invoices to a factoring company and receive immediate payment, rather than waiting for their clients to pay. This can help trucking companies to cover short-term expenses, such as fuel and maintenance costs, and invest in new equipment and technology. Additionally, factoring can help trucking companies to reduce their credit risk and improve their balance sheet by removing outstanding invoices from their accounts receivable. By choosing a factoring company that specializes in the trucking industry, trucking companies can benefit from lower fees and faster funding, allowing them to focus on growing their business.
Trust in EZ Invoice Factoring
The EZ Invoice Factoring philosophy is about trust and a professional working relationship. We understand the challenges businesses face with customers who have poor payment histories, and we strive to provide solutions that mitigate these risks. We want our customers to be long-term customers.
Get Started Today! 1-855-EZ-FACTOR!
Ready to Get Started?
Fill out the form below and one of our factoring experts will help you on your way!
Better Manage your Money
Recourse freight factoring options for mid-size trucking companies are often seen as risky because they involve many hidden fees and added risk. EZ Invoice Factoring offers safe recourse options that are easy to understand. This way, mid-size trucking companies assume less risk. EZ Invoice Factoring wants the right options for your business so you can better manage your money.
The EZ Invoice Factoring mid-size trucking company recourse factoring program pays you immediately. Our trucking recourse programs are individualized so that you can do what is best for your mid-size trucking company and better manage your money.
