Non-Recourse vs. Recourse Factoring

What is freight factoring?

Freight factoring is a financial tool that provides you with immediate working capital by factoring your invoices. Factoring involves selling your invoices at a discount. In turn, you get immediate cash and TBS-not you-waits for payment.

NON-RECOURSE: TBS TAKES THE RISK

If a customer doesn’t pay due to their own credit or funding issues, TBS takes the loss! We will not come to you for repayment.

Benefits

  • No reserve account
  • No volume requirement
  • No long-term commitment
  • No sign-up fees
  • No personal credit score minimum
  • Free online credit checks
  • FedEx program
  • Advance program
  • Fuel card

RECOURSE: YOU TAKE THE RISK

This option offers lower fees because you take on more risk. If a customer doesn’t pay, you are on the hook for that money. If your company has enough funding to take that risk, recourse factoring may work for you.

Benefits

  • Highest advance rate in the industry
  • Pricing can vary by volume and debtor quality
  • No volume requirement
  • No sign-up fees
  • Free online credit checks
  • FedEx program
  • Advance program
  • Fuel card

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