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Recourse vs non-recourse factoring
With recourse factoring you buy back an invoice the broker doesn't pay; with non-recourse the factor takes that loss, but often only in narrow cases: eCapital says its non-recourse applies only to a customer's bankruptcy, and Outgo's agreement covers only a broker's insolvency or inability to pay. Sources: each company's site and Outgo's carrier agreement, quoted below.
"...solely because of Broker's Insolvency or financial inability to pay; otherwise Outgo will have full recourse to Carrier for the repurchase and payment of uncollected or disputed Purchased Unpaid Invoices."
Outgo (DAT) Carrier Factoring Agreement, read 2026-10-24
How long before you have to buy an invoice back
- Riviera Finance: "not paid to RIVIERA within forty-five (45) days from date of purchase" Recourse applies if the client sent the original invoice itself. (SEC EDGAR)
- TCI Business Capital: "if any Account has not been paid in full to TCI for any reason whatsoever within 75 days ... TCI may require Client to repurchase the Account" (SEC EDGAR)
- Porter Capital Corp. (parent of Porter Freight Funding): "ninety days after the origination date these Special Risk invoices shall be deemed a Customer Dispute and shall be charged back" (SEC EDGAR)
- Triumph Business Capital (Advance Business Capital LLC): "remains unpaid beyond the Repurchase Period" The agreement sets the Repurchase Period at 120 days. (SEC EDGAR)
What each company says its non-recourse covers
| Company | In its own words |
|---|---|
| Apex Capital | "We offer both recourse and non-recourse factoring options" apexcapitalcorp.com"Apex takes the credit risk if the customer defaults on their invoice payments for certain situations" apexcapitalcorp.com |
| Denim | "Non-recourse options help protect you from unpaid invoices." truckstop.com |
| eCapital | "however, this only happens if the customer cannot pay due to bankruptcy." ecapital.com"Recourse factoring places the responsibility on trucking companies to buy back invoices or exchange them for another of comparable value if the customer does not pay for the delivered load within 90 days." ecapital.com |
| HaulPay | "HaulPay is Non-Recourse on credit." haulpay.io |
| Love's Financial | "the factor assumes the risk of non-payment if the customer does not pay the invoice due to an insolvency or a credit event, even if bankruptcy is not filed." lovesfinancial.com |
| OTR Solutions | "Unlike standard non-recourse programs that typically cover broker insolvency or bankruptcy, OTR's protection extends to qualifying non-payment even when the broker is still in business." otrsolutions.com"Only OTR offers True Non-Recourse factoring with no chargebacks, even after 90 days." otrsolutions.com |
| Outgo | "solely because of Broker’s Insolvency or financial inability to pay; otherwise Outgo will have full recourse to Carrier for the repurchase and payment of uncollected or disputed Purchased Unpaid Invoices." outgo.dat.com |
| Porter Freight Funding | "Chargebacks only after 90 days of active collection efforts" porterfreightfunding.com |
| Riviera Finance | "non-recourse invoice factoring is an outright purchase of accounts receivable for cash." rivierafinance.com |
| RTS Financial | "RTS provides non-recourse factoring, meaning we'll assume the credit risk if your client doesn't pay." rtsinc.com"Non-recourse factoring is when freight factoring companies assume the credit risk if your client can't pay the invoice amount because of issues like insolvency or bankruptcy." rtsinc.com |
| Thunder Funding | "By default all of our agreements are non-recourse." thunderfunding.com |
| Triumph | "Non-Recourse Contracts Available We’ll protect your business even if your customer goes bankrupt." triumph.io |
Quoted from each company's site, read Oct 24-25, 2026. Companies that say nothing about recourse on the pages we read are left out.
Questions to ask
- Does "non-recourse" cover only insolvency and bankruptcy, or any non-payment?
- How many days after purchase can an invoice be charged back?
- Is the non-recourse rate higher than the recourse rate, and by how much?
More: contract terms that cost money, factoring rates calculator. Not financial or legal advice.
Questions
What is the difference between recourse and non-recourse factoring?
With recourse factoring you buy back an invoice the broker doesn't pay. With non-recourse the factor takes that loss, but only in the cases its contract names.
What does non-recourse factoring cover?
Often only a broker that goes insolvent or bankrupt. eCapital says its non-recourse applies only to a customer's bankruptcy, and Outgo's agreement covers only a broker's insolvency or inability to pay.
How long before a factor charges back an unpaid invoice?
In the 4 signed agreements we found on SEC EDGAR, from 45 to 120 days. Those are older agreements; ask for the number in yours.