Non-Recourse Freight Factoring Gives Clients The Enhanced Security They Deserve
Non-Recourse Factoring Is Available To PCG Clients
What Is Non-Recourse Freight Factoring?
Non-recourse freight factoring is when a factoring company, such as Phoenix Capital Group (PCG), gives clients the ability to sell their invoices without recourse. The typical invoice factoring period usually takes 30, 60 or 90 days for the customer to pay the invoice back. However, waiting that long for an invoice to be processed can lead to financial stress. This is why many truckers come to PCG for factoring help. Non-recourse factoring with Phoenix Capital Group means that if an account debtor does not pay a trucker’s invoice, then the factoring company (PCG) will take the loss on that invoice, not the factoring client.
How Trucking Companies Benefit From Non-Recourse Freight Factoring
Non-recourse freight factoring gives truckers and trucking companies the ability to haul their loads with confidence! Factoring gives companies the ability to respond to all business expenses without having to wait for their invoices to process. The factoring company, Phoenix Capital Group, is essentially ensuring the receivables for the factoring client. If a customer does not pay or pays invoices slowly, then Phoenix Capital Group assumes the risk of nonpayment so you can keep your working capital.
When Is Non-Recourse Freight Factoring a Good Option
A non-recourse factoring plan is useful for truckers and trucking companies because it helps limit a company’s bad debt. With non-recourse freight factoring, truckers are not liable for the advance if a factored invoice defaults. Or, if a trucker’s customer does not have good credit, the invoice can be paid in advance or through a secure method.
Non-Recourse Freight Factoring For Small Trucking Companies
The non-recourse factoring option has become very popular for independent truckers and small trucking companies. Non-recourse factoring is especially helpful to small trucking companies that haul for a variety of shippers, companies that would be harshly impacted by non-payment.
What The Typical Non-Recourse Freight Factoring Contract Does Not Cover
PCG is candid about the pros and cons of our services, and there are a few related to non-recourse factoring that we would like to make you aware of. Non-recourse freight factoring offers some defense against credit risk, but it does not offer protection against disputes and overall performance problems. It usually covers truckers if a client goes bankrupt during the factoring period. However, while it can be an important safeguard, it is not all-inclusive. The following are examples of scenarios in which non-recourse freight factoring may not apply:
- Invoices disputed.
- Invoices where the client has breached its agreement with Phoenix Capital Group.
- Invoices when the factoring client has made the “credit problem” worse.
- Invoices that are offset by other amounts due to the account debtor.
- Invoices where the client has sent the invoice to the customer instead of the factoring company sending the invoice.
Could Your Business Benefit From Non-Recourse Freight Factoring Services?
When you want enhanced protection against non-paying or slow-paying invoices, our non-recourse freight factoring services can give you additional peace of mind. Call 623-298-3450 or use the form below to explore our services and see how we could take care of your business’s freight factoring needs. We will be happy to help you find the services that could benefit your business best.