What's the difference between recourse and non-recourse factoring?
Recourse factoring does not include bad debt protection. Therefore if a customer fails to pay, you will have to repay the factoring provider the amount financed against that debt. Non-recourse factoring includes bad debt protection. So, if a customer fails to pay an undisputed debt, the factoring provider will credit you with the amount of debt up to an agreed credit limit.
