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Recourse Factoring

Recourse Factoring vs. Non-Recourse Factoring

Recourse Factoring

Non-Recourse Factoring
  • Business receiving the cash advance is responsible for the future payment of the payable invoice
  • If the invoice is not paid, the factoring company can obtain the money from the business that has received the cash advance.
  • Offers the lowest fees
  • Business receiving the cash advance is NOT responsible for the future payment of the payable invoice
  • If the invoice is not paid, the business receiving the cash advance is not liable; the factoring company takes on 100% of the risk of collecting on the invoice.
  • A higher risk for the factoring company, but a great option for small businesses and startups.

Benefits of factoring with Business Factors include:

  • No upfront fees
  • Fast funding
  • Easy credit qualifications
  • Friendly, confidential consulting

The vast majority of invoices we buy are non-recourse. However there are times when you may want us to purchase copies of invoices that have already been mailed (many new accounts are like this). Any time Business Factors buys invoices that are not originals and have already been mailed by our client they are purchased on recourse.

Non-recourse factoring can be quite inexpensive when you work with Business Factors. A $10,000 invoice can cost as little as $200 to fund. By taking discounts from your vendors and possibly adding a little to your invoice, you could possibly even factor for free. Our options are often less expensive than a bank which will charge you closing costs, origination fees, points as well as interest.

Getting cash is simple when you work with Business Factors. Just call us or apply online to and we will move faster than any bank or other lender – in most cases you will hear back from us within 24 hours

Call us anytime at 888-234-6663 – we’re always available to answer your questions!

    

1-888-234-6663