Factoring, or “accounts receivables financing”, is the cash flow solution that keeps your trucking business running. Instead of waiting 60+ days for your money, we will buy your invoices at a discount, pay you next day, and do the waiting for you! You’ll have the cash you need to keep your trucks rolling, while we handle the billing and collecting.
Non-recourse factoring companies purchase your Accounts Receivable “at no risk” to you, meaning that if your debtor does not pay for the invoice, then the factoring company takes the loss (having already paid you). You will then get a full reimbursement from the factoring company.
Factoring companies with recourse purchase your Accounts Receivable “with shared risk” to you, meaning that if your debtor does not pay for the invoice (for any reason, and usually only after 90 days), then the factoring company returns the invoice to you for reimbursement.
The shared risk model of with recourse offers a productive financial relationship where you and Convoy, together, seek to maximize your cash flow, control your finance costs, and monitor your debtors to work only with those who pay your invoices with integrity.
With Non-Recourse you will usually be paying a higher discount fee because the factoring companies are taking the most risk, but you will get a full reimbursement if the shipper is unhappy. Recourse is beneficial because you will always pay a lower fee since you are at risk as well as the factoring company.
If you would like to find out which plan is best for you, please contact a Convoy Capital Representative.