Factoring Question of the WeekFeb 6, 2019 / Posted in Uncategorized
There are two types of factoring available to carriers.
Pay4Freight.com takes on the credit risk. Should the account fail to pay due to a financial reason, not carrier performance, Pay4Freight.com will then take the full loss.
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.