Non Recourse Factoring

I think many business owners that request Non Recourse Factoring do not really understand what Non Recourse Factoring vs Recourse Factoring really is.

Non Recourse Factoring applies to the inability of the client's customer to pay for credit reasons, not for disputes over the product or services quality or quantity ordered etc. These issues would be a Recourse Factoring transaction.

Factoring is a cash flow tool, not a way to get rid of bad debt. These customers belong to the company looking to factor so why would anyone expect for a factor to just buy a receivable and not have any recourse to the advanced funds over a dispute.

Just understand that Non Recourse Factoring is not selling the invoice and totally walking away. The responsibilities of providing a good product or service still applies. Do not miss the opportunity of signing up with a better factoring company because you thought you were signing up with a Non Recourse factor that allowed this.

The latest stats in from the Commercial Finance Association listed the results from surveying the Factoring Companies that are members had a 9.3% increase in Factored volume over 2004 to 112.8 Billion. Global Factoring volumes exceeded 1 Trillion.

The Factoring Industry continues to see growth because this powerful cash flow tool is getting the recognition it deserves and is embraced for the simplicity and solutions it provides.

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Thanks for reading!