<br/> <br/> When a factor invests in your invoices, the factoring arrangement will take one of two forms: recourse or non recourse.<br/><br/> Utilizing recourse factoring, the receivable factoring company holds the right to seek repayment from you if your customers neglect to pay off their invoice. Puts simply, if a factoring company is unable to collect the amount due on an invoice, he could look to you to pay any advance you got. Recourse factoring offers protection to the factor from any type of collection issues. That being said, sometimes, recourse factoring may be very appropriate. For example, if one of your customers has suspect credit ratings, a factor might simply purchase those specific invoices under a recourse circumstance.<br/><br/>Non-recourse factoring, also, says that the receivable factoring company takes complete responsibility for the www.gameparts.org invoice-regardless of the fact that he may or may not have the chance to collect the amount due. Obviously, most company owners opt to take part in non-recourse factoring arrangements considering that the factor guarantees the creditworthiness of all receivables purchased.