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Case Study

Case Study: Non-Recourse Factoring for a Trucking Company — No Chargebacks, Ever

By Michael Weinberg  ·  NTIB Finance & Consulting

← Back to Blog Trucking company financed with non-recourse freight factoring

The deal at a glance: $1M+ accounts receivable factoring facility · trucking company · fully non-recourse — the lender can never back-charge the client for any invoice, even if it becomes non-collectible.


The Challenge

Trucking runs on factoring — fuel and payroll can't wait 30, 60, or 90 days for shippers and brokers to pay. But most factoring agreements carry a sting: if a customer doesn't pay, the factor charges the invoice back to you. Holdbacks and take-backs turn "guaranteed" cash flow into a liability that can surface months later.

What We Did

We placed the company with a lender offering fully non-recourse factoring. Under this agreement, once an invoice is funded, the risk of non-payment belongs entirely to the lender. No holds. No take-backs. Ever — even if the invoice becomes completely non-collectible.

The Result

A $1M+ facility with a true guarantee of payment, at competitive rates. The company converts its receivables to cash and never has to look over its shoulder about a customer's solvency again.

What It Means for You

Fully non-recourse structures are rarer and cost somewhat more than standard factoring — and for a business whose biggest risk is one large customer failing, that protection can be worth every basis point. Comparing options? Start with A/R financing vs. factoring: which protects your client relationships?


Have a deal that looks like this one? Tell me the basics and I'll tell you, straight, how I'd approach it. Call 914.419.3059, email mike@ntibfin.com, or book a free consultation. More deals on our completed projects page.