Recourse versus Non-Recourse Factoring

Hiring a trucking factor can be a simple and efficient way to get the money you need for overhead now, rather than waiting weeks or longer for your business associates to pay their bills. If you are interested in working with a factor, you have many different kinds of plans to choose from. One of the first choices to make is whether you want a recourse or non-recourse truck factoring program.

At TBS Factoring Service, LLC, we understand that every business is unique. That is why we offer several different plans and optional perks. Whether you are a small business that is just getting started or a large and well-established trucking company, we are ready to work with you. To learn more about truck factoring, call us today at 1-800-207-7661.

Choosing the Right Plan for You

If you choose to enter a business relationship with our trucking factor, you will send your company’s invoices on to us. We will pay you a percentage of these invoices up front, and then pursue payment directly from your business debtors. If we do not receive those payments, what happens next will depend on the kind of factoring plan you have chosen.

If your company has a non-recourse plan with us, you do not need to worry about customers who do not pay their bills. Our trucking factor will assume that risk ourselves. In return, the payments we make to you may be relatively small – that is, only up to 90% of each invoice. This kind of plan is usually recommended for small and newly opened businesses.

If your company has a recourse plan, however, you will be partially liable for unpaid bills. In other words, if we cannot receive payment from your customers, we may need to seek that money from you. In return for taking on this risk, you can receive a higher percentage for your invoices – up to 95%.

One benefit of working with TBS is the ability to change your plan with us if your circumstances change. Our experience and flexibility allows us to work closely with you to meet your business’s needs.

Contact Us

Waiting for customers to pay their bills can slow down your business and impact your future plans. Do not just wait around to be paid; learn about truck factoring by contacting TBS Factoring Service, LLC at 1-800-207-7661 today.