Non-Recourse Factoring
Non-recourse factoring typically involves factoring on a flat-rate basis and offering non-recourse factoring protection from bad debt. Generally, non-recourse factoring is considered the safest choice for carriers who need to factor their invoices because they know up front precisely what the factoring will cost them and when they will be paid. Under this option, the carrier isn’t impacted even if the customer takes 300 days to pay.
Factoring companies that impose no hold backs and operate as non-recourse pay the full amount of the invoice up front (less the factoring fee), absorbing the risk of legal costs, collection fees and/or loss if the customer is slow to pay or never pays.