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What is the difference between recourse and non-recourse factoring?

April 26, 2017difference factoring non-recourse recourse

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What is the difference between recourse and non-recourse factoring?

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Non-Recourse factoring is invoice factoring in which the factor takes the credit risk of an account debtor, protecting the client from credit loss. When an invoice is factored with “recourse” it means that the client is ultimately responsible for payment, regardless of whether the account debtor pays or not .