Assuming Credit Risk: Non-recourse vs. Recourse

What happens when an account debtor becomes financially unable to make payment for an outstanding invoice that a factor has purchased? The answer dependson whether the factor operates on a non-recourse or recourse basis.

In a non-recourse transaction, the factor purchases the underlying credit risk associated with each factored invoice. The client therefore incurs no liability to the factor if the account debtor proves financially unable to make payment. In such anevent, the factor must either absorb the loss or take direct enforcement action against the account debtor.
A recourse transaction, however, allows the factor to make claims against the client in order to recover losses caused by account debtor insolvencies. Recourse factoring agreements generally require the client to repurchase any invoices thatremain unpaid after a certain number of days (typically 60 or 90).
 invoice factoring company
and account receivable factoring
and accounts receivable financing

The basics of invoice factoring are quite simple: The client gives the invoice factoring company his accounts receivable. The factoring company advances funds against that paper then remits the balance of the money, less fees, when the receivable is paid by the customer. Understanding some of the complexities of invoice factoring, however, enables you to better analyze its value.

invoice factoring
freight factoring
account receivable factoring
We Have Factoring Funding All Industries And All Company Sizes

Staffing company
Building Products Distributor
Manufacturing company
Maintenance Service
Service Providers Credit
Metalized coating
Auto Parts company
Powder Coating Accounts Receivable 
Cable Contractors Credit
Utility Construction company
Machine Shop
Oil and Gas Industry  Accounts Receivable
Trucking  company Accounts Receivable
Freight Forwarding company
Healthcare Staffing company
Government Receivable Contracts
Nursing Agency company credit
Medical Staffing company
oil refinery inspection services Auto Glass Installers
Distributors Credit
Freight & Trucking Accounts Receivables
Manufacturers
Medical Practitioner Receivable
Security Guards Accounts Receivable
Temp Staffing Agencies Credit
And Many More


More Factoring Financing Information

  Our customers tell us that our combination of low rates and
exceptional service makes us the best choice for account
receivable financing   services.
We are a nationwide company offering receivable factoring
programs the others can't because of our unique funding
capabilities. The others are restricted by their banks on what
kind of account receivable factoring programs they can offer.
We are not restricted!
We have been providing account receivable factoring services
nationwide for decades and have clients in hundreds of
industries. When you become our client you will be served by
our staff with an average of 11 years account receivable factoring
industry experience per account executive - well above the industry
norm! You will have one dedicated person and his or her assistant who
will handle your account. Unlike the others, you don't have to start over
each time you call with a new person.
Unlike other account receivable factoring companies, our program includes
the following features at no additional charge:
- 12- 24 hour funding on approved invoices
- Highest advance rates in the industry
- Credit analysis on new and existing customers
- Continuous collection management and follow-up on factored invoices
- Invoice and statement mailing (postage included)
- Account status inquiries anytime; 24/7 online account access
- We allow you to electronically submit invoices
- Free credit checking on new customers at no additional cost
- Flexibility that allows you to maintain control:
  - You select accounts you prefer to factor on an invoice by invoice basis
  - You control total factoring costs by only factoring on an "as needed"
basis
Up to 97% Account Receivable Factoring Advance Rates
Advance rates are based on overall risk associated with a particular
industry as well as experience and track record. We hold reserve accounts to
accommodate industries which typically experience dilution and that we would
otherwise not be able to service. Advance rates range from 80% to 97% of the
gross invoice amount.
Account Receivable Factoring Fee Structures
Fees are determined based on your industry, the credit worthiness of your
customers, how quickly your invoices turn, and monthly factoring volume.
GET YOUR CASH TODAY
- Call our factoring specialists at 1-866-593-2205, or
- Email us, or
- Complete our ONLINE REQUEST FORM




More Accounts Receivable Financing Information
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