Non-Recourse Factoring : Here, as you’ve probably guessed, the factoring service company acquires the liability of all unpaid invoices.This option could also be ideal for larger companies with the resources to cover unpaid invoices. Recourse factoring may be ideal for trucking companies whose clients have stellar credit ratings (i.e., they typically pay their invoices when due). Recourse factoring tends to attract lower fees since the factoring company doesn’t purchase the liability of defaulted invoices. Recourse Factoring : This is the most popular type of invoice factoring service, and it means that your company must buy back invoices for which the factor couldn’t collect payment.The second classification is based on the type of agreement you have with the factor. Spot factoring : This is similar to selective factoring in that you can choose the invoice to factor, but the factor treats this as a one-time transaction with no expectations of future business.The ongoing relationship makes it cheaper than spot factoring. Selective factoring : It also requires an ongoing agreement with a factor, but here, you have the flexibility to select the invoices to factor.Whole turnover factoring tends to carry less expense of the three types. That is, you don’t get to choose which invoices to factor. Whole turnover: You have an ongoing (typically a 12-month) agreement to sell all your invoices to an invoice factor.The first classification is based on how and when you can use invoice factoring to finance your trucking business. Here are two common types of factoring classifications: Traditionally, invoice factoring, as a whole, is classified in several different ways. Report a bug, suggest a feature request, or ask a question here. Use our help resources to learn which solution works best for your business. Our team is available Monday – Friday, 9am – 5pm ET. We’re always here to discuss how we can work together to help small businesses grow. We’re always looking for bright, passionate people to join our team.įundThrough in the press, and updates about our company.
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Read our thought leadership, case studies, company updates, and more. New to invoice funding? Read our thought leadership to help you boost your working capital. Read the success stories of small businesses that use invoice funding to expedite their growth. Learn which industries we help and the companies that reduce their wait time for working capital. Get the working capital you need in 24 hours or less for one low price.įundThrough has the highest customer satisfaction rate in the industry. Use our simple invoice financing product, best for funding up to $15,000. 1 factoring platform to boost cash flow within 24 hours. Discover how easy it is to get fast funding for your business.
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