Factoring
Recourse vs non-recourse factoring
Updated
With recourse factoring, an invoice the broker never pays comes back to you. With non-recourse, the factoring company carries that loss, for the reasons its contract names. On factors' own pages those reasons run from broker bankruptcy or insolvency at Porter Freight Funding to broker non-payment at BasicBlock.
At a glance
- Factors that publish recourse terms
- 15
- What non-recourse covers on their pages
- From broker bankruptcy or insolvency to broker non-payment
- Owner-reported non-recourse rates
- 2% at OTR Solutions and at Porter Funding Solutions
- Checked
- October 17, 2026
How the two differ
Recourse means the risk stays with you. If a broker doesn't pay an invoice you factored, the factor comes back to you for the money it advanced.
Non-recourse moves some of that risk to the factor. One owner on the forums described it as the factor paying you even if the broker fails to. Each contract names the events it covers, though, and another owner warned that no contract is absolutely no-recourse.
What non-recourse covers, company by company
Of the factoring companies in this directory, 15 publish recourse terms on their own pages. This is what each says, as of October 17, 2026.
| Company | What it offers | What non-recourse covers, per its page |
|---|---|---|
| Porter Freight Funding | Both | Broker bankruptcy or insolvency |
| BasicBlock | Non-recourse | Broker non-payment. Its page says a broker's failure isn't your responsibility |
| Outgo | Non-recourse | A broker or other customer that defaults or can't pay |
| 1st Commercial Credit | Non-recourse | Non-payment by freight brokers, backed by credit insurance |
| 1st Trucking Factoring | Non-recourse | Clients that don't pay the invoice |
| Riviera Finance | Non-recourse | Riviera takes the credit risk on invoices it factors |
| Triumph | Non-recourse available | Bankruptcy of a broker it approved, with no chargebacks advertised |
| Truckstop | Non-recourse available | Broker non-payment, subject to the agreement |
| eCapital | Both | May absorb a covered customer's insolvency. Conditions vary |
| TBS Factoring Service | Both | Customer credit or funding problems |
| OTR Solutions | Non-recourse | Advertised as true non-recourse |
| HaulPay | Non-recourse | Says it removes most payment risk |
| Apex Capital | Both | |
| Love's Financial | Both | |
| Interstate Business Capital | Recourse | Its page lists recourse factoring options |
Two kinds of coverage show up. Porter names broker bankruptcy or insolvency, and Triumph names bankruptcy of a broker it approved. BasicBlock, 1st Commercial Credit and Truckstop speak of broker non-payment more broadly.
Read what's covered before you compare rates. If your contract names only bankruptcy or insolvency, ask in writing what happens when a broker that's still in business doesn't pay. Apex Capital, Love's Financial, OTR Solutions and HaulPay don't spell out what their non-recourse covers, so ask each one for the covered events in writing.
What non-recourse can leave with you
- Brokers the factor didn't approve. Triumph's coverage is for brokers it approved. One owner reported going unpaid on loads from brokers their factor wouldn't take, so check every broker with your factor before you book.
- Fees and chargebacks. One owner on non-recourse reported being charged a factoring fee three times across $2,100 of loads and signing a chargeback agreement while funding on submitted loads was held.
- Collection deadlines. Another commenter described collection requests at day 75 and repayment plans.
When a factored invoice does come back to you, the broker's bond is the next place to look. Freight brokers must carry $75,000 in security, as a BMC-84 bond or a BMC-85 trust. The broker bond claim guide and unpaid load guide walk through the steps.
What non-recourse costs
Non-recourse sat at the low end of what owners reported paying: 2% at OTR Solutions with no ACH fees and 2% at Porter Funding Solutions, where the owner pointed to the fine print on non-recourse. 1st Commercial Credit publishes a non-recourse range of 1.5% to 3%. Porter Freight Funding holds a small reserve on recourse and no reserve on non-recourse.
Owners who use non-recourse mostly speak well of it. One said OTR Solutions has been great with its non-recourse terms, and a Triumph customer said the factor makes the credit call and takes the non-payment risk.
Another owner advised that non-recourse under 3% is worth it. Factoring fees has every published and owner-reported rate.
Get these answers in writing
- The events non-recourse covers, whether bankruptcy and insolvency only or any broker that doesn't pay.
- Which brokers are approved, and how you check one before you book. Porter Freight Funding and Apex Capital advertise free broker credit checks. Triumph, OTR Solutions and Riviera Finance offer them too, so ask whether there's a charge.
- What happens on a dispute, a damage claim or missing paperwork.
- When an unpaid invoice comes back to you, and whether the reserve covers it.
- Both prices if the factor offers both, as Porter, Apex Capital, eCapital, TBS and Love's Financial do.
For the rest of the decision, see quick pay vs factoring and factoring for a new authority.
Price the offer with its terms. Put the rate, advance and fees from a recourse or non-recourse offer into the factoring calculator. Run each offer on its own and compare the yearly interest rate it shows, along with the monthly and yearly fee, your cash by day three and a broker's quick pay. Factoring calculator
Frequently asked questions
What is the difference between recourse and non-recourse factoring?
With recourse, an invoice the broker never pays comes back to you. With non-recourse, the factor carries that loss for the reasons its contract names.
Does non-recourse factoring cover a broker that just doesn't pay?
It depends on the contract. Porter Freight Funding's non-recourse covers broker bankruptcy or insolvency, while BasicBlock's covers broker non-payment.
How much does non-recourse factoring cost?
Owners reported 2% for non-recourse at OTR Solutions and at Porter Funding Solutions, at the low end of the factoring rates owners posted. 1st Commercial Credit publishes a non-recourse range of 1.5% to 3%.
What can I do if a factored invoice comes back to me?
Look to the broker's bond. Freight brokers must carry $75,000 in security, as a BMC-84 bond or a BMC-85 trust, and the broker bond claim guide walks through the steps.