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Non-Recourse Factoring
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Page last updated 19th October 2011 at 08:24:59
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Non-Recourse Factoring
What is Non-Recourse Factoring
In non-recourse factoring, the factor takes on the bad debt risk. It accepts specified risks such as total
disappearance, but it does not insure against slow payment. Because of this, non-recourse factoring tends to be more
expensive than recourse factoring.
You never have to refund the advance to the factor, but you must pay interest to the factor for the period specified by the
factoring agreement.
The factor takes over all your rights to pursue the customer for payment. This includes the right to take legal action.
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