There are two types of factoring available to carriers.

Non-recourse factoring: takes on the credit risk. Should the account fail to pay due to a financial reason, not carrier performance, will then take the full loss.

Recourse Factoring:

The carrier takes all risk of the broker or shipper not paying the factor for any reason, including credit loss. Typically, all recourse factors require the carrier to reimburse the factor in full after 90 days from the initial advance.