Non-recourse literally means the factor doesn't have recourse against you if they aren't paid for your the load. Under non recourse the factor is accepting the risk of non payment so the fee is higher. Ask about our military discounts!
These programs are best for small trucking companies for two reasons.
1. It doesn't make sense to take all the risk to save a few percent if the savings from that few percent are minimal. For example if your company was billing $100,000 per week saving a few percent means you would save a few thousand a week, for this savings it makes sense to take on the risk, however if the savings are only $100 per week you have to ask yourself if it makes more sense to pay that to a factor to take the risk so you can have peace of mind.
2. Small trucking companies generally don't have the capital to sustain an invoice going bad. Most small trucking companies are depending on being paid for each load they do and if they have one that doesn't pay they are faced with going out of business.
When you look for a non-recourse program you should expect to be paid on a flat-rate basis with no reserve or holdback. Additionally the factor should be covering all non payments that aren't due to delivery issues. Many factors try to sell non recourse that only covers you if the customer goes bankrupt. This limits their exposure since the vast majority of time the brokers don't bother to claim bankruptcy, they just disapper. If you are going to pay the fee you want to be sure to get the maximum coverage.