Recourse or Non Recourse?
As our client you need to be aware of the difference between recourse and non recourse factoring. Recourse factoring costs less than non resource and has less requirements form you in regards to your customers and the systems that you have in place, this is mainly because you will be taking the risk of any bad debt.
You would then be responsible for the payment of any outstanding monies to us if the customer does not pay and will still have to pay the fee and interest.
With non recourse factoring, we at Invoice factoring will be responsible for any bad debts as a result this type of factoring will cost more . However, you will not need to refund any advance to us but must ensure that you pay the interest and fees.
It will be our responsible to take over the right to pursue the customer for the payment as well as the right to take legal action against them if they do not pay.