Trucking companies dealing with payment risk and cash flow should pay attention to the recourse vs nonrecourse freight factoring. In recourse factoring, the carrier is not relieved of payment upon failure by the broker or shipper to pay and in most cases the paying is cheaper. The nonrecourse factoring transfers some portion of risk to occurrence of payment to the factoring company, commonly including nonpayment by customer insolvency risk, but generally at a premium. The knowledge of this difference allows carriers to select the best alternative that suits their risk appetite and financial objectives. Both kinds offer quicker access to cash through the advance of funds overdue freight invoices. Nonetheless, the terms of the contracts, the coverage limits, and the procedures of the credit approval are different. With a close comparison between recourse vs non recourse freight factoring, carriers will be able to strike an optimal balance between cost, risk exposure, and the stability of cash flow and still maintain the daily operations running smoothly and plan of expansion with increased confidence.