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

April 26, 2017factoring non-recourse recourse

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

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non-recourse factoring contract includes bad debt protection (credit insurance). This means that if an insured customer fails to pay an undisputed debt, and provided it is within the agreed limits, The Factoring Company will credit you the value of the outstanding debt. recourse factoring contract is where you assume all risk of non-payment from your customer.