There are two main types of freight factoring:
Non-recourse factoring: The factoring company assumes all the risk of the invoice not being paid. If the customer does not pay the invoice, the factoring company will not come after the business for the money.Non-recourse factoring: The factoring company assumes all the risk of the invoice not being paid. If the customer does not pay the invoice, the factoring company will not come after the business for the money.Recourse factoring: The business is still responsible for paying the invoice if the customer does not pay. However, the factoring company will typically offer a lower discount rate for recourse factoring.