What Are the Best Tips for Recourse Factoring?

Recourse factoring means that the factorer is not responsible for checking credit lines and providing bad debt guarantees for the debtor, and only provides other services including financing. No matter what reason the account receivable cannot be recovered, the factorer has the right to claim the financing amount paid back to the supplier and refuse to pay the outstanding balance.

Recourse factoring

Right!

Recourse factoring means that the factorer is not responsible for checking credit lines and providing bad debt guarantees for the debtor, and only provides other services including financing. No matter what reason the account receivable cannot be recovered, the factorer has the right to claim the financing amount paid back to the supplier and refuse to pay the outstanding balance.

Scope of application

This type of factoring is applicable when the supplier does not need to buy out accounts and adjust statements, but only needs financing and account collection services. ^[1]