@iamkashedwards: A student asked me what happens if a broker doesn’t pay the factoring company. In most recourse factoring agreements, the factoring company can charge that advance back to the carrier. That means your factoring account could end up with a negative balance until the invoice is resolved. This is one of the reasons it’s so important to understand the type of factoring agreement you’re signing before choosing a company. Recourse = The carrier may ultimately be responsible. Non-recourse = The factoring company assumes certain credit risks, but coverage depends on the agreement. Always read the contract, those details matter.

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Thursday 23 July 2026 12:34:35 GMT