Recourse
and Non Recourse Factoring
Factoring is a means of getting a cash
advance on payable invoices. There are two types
of factoring agreements used by factors, Recourse
Factoring and Non Recourse Factoring.
Recourse Factoring is the most common
and most affordable factoring
method. Recourse factoring
allows the Factor “recourse” to come
back to the Seller for payment in the event the debtor
does not pay the invoice. The factoring company does
not risk bad debt on behalf of your business. If
your customer refuses to pay the invoice or a bankruptcy
is filed, you the Seller must buy back the unpaid
invoice plus pay all related factoring fees.
Since the factor is protected against the non-payment
of invoices, recourse factoring agreements offer
the lowest fees. Generally after 90 days if
the invoices have not been paid by the debtor the
repayment process from the Seller begins.
Want a quick quote? Please click
here to get a great rate.
Questions? Call us at 1 (877) 876 2803 now (toll free).
Recourse Factoring has a number of benefits.
- You
get a better rate with recourse factoring because you
assume most of the risk.
- Easier
to arrange recourse factoring
- Less
stringent rules about your financial systems and payment
history of your customers
- Opportunity
to swap a new invoice of equal or greater value, for
an invoice that has not been paid to the Factor.
- Working
cash flow for your business.
Want and instant online recourse factoring quote?
Please fill out this
form.
For a free consultation call
1 (877) 876 2803 (toll free USA and Canada).
GET A FACTORING QUOTE NOW
Email questions by clicking here Want a quick quote? Please click here to get a great rate.
Questions? Call us at 1 (877) 876 2803 now (toll free). |
