How Recourse vs Nonrecourse Factoring Impacts Your Trucking Business Profit?

Running a trucking business requires steady cash flow, but waiting 30–60 days for payments from shippers or brokers can strain operations. Freight factoring helps bridge this gap by providing immediate funds for unpaid invoices, allowing you to manage fuel, maintenance, and driver salaries without delay. However, understanding the difference between recourse and nonrecourse freight factoring is essential. Recourse factoring offers lower fees but leaves you responsible if customers don’t pay, while nonrecourse factoring provides protection against bad debt at a higher cost. Choosing the right option helps balance profitability, stability, and risk management for your trucking company’s long-term success.

Read our blog to know more: