Freight factoring consists of many options and varieties. The two main types of truck factoring include; recourse truck factoring and non-recourse truck factoring.
Recourse truck factoring means that the person purchasing the insurance on the truck is willing to put the credit on their shoulders. This responsibility of credit fees allows for the rates to be lower than non-recourse truck factoring and therefore more affordable.
Non-recourse truck factoring involves the company taking the credit risk so there is no credit liability for the driver. The company is responsible for dealing with credit problems. This option works well for companies that are operating between one and five trucks.
Freight factoring can be done in a number of ways. To learn more about truck factoring please contact TBS Factoring LLC by calling 800-207-7661 today.