Posted by admin in Glossary

Also known as non-recourse factoring. Factoring without recourse means that the factor assumes all risk of customer non-payment. Because there is more risk to the factor involved, factoring fees are usually higher and the advance rate lower than factoring with recourse. Though the factoring agent assumes risk, the client usually retains some sort of contractual obligations in terms of providing contact information and in terms of warranties as to the quality of the debt. See also Advance Rate, Charge Back and Factoring with Recourse.

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