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

April 26, 2017Invoice Factoringfactoring invoice invoice factoring non-recourse recourse

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

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When an invoice is factored on a non-recourse basis, the factor takes the credit risk of the customer, thereby protecting the client from credit loss. When an invoice is factored with recourse, it means that the client is ultimately responsible for payment if the customer does not pay.