With-recourse factoring

Recourse means the factor can seek payment from the business in circumstances set out in the contract, such as an eligible customer's failure to pay. The factor may still administer the ledger, collect debts and provide an advance, but those services do not themselves transfer default risk. Pricing must therefore be assessed alongside the risk retained. Examine the exact recourse triggers, reserves, customer disputes and settlement timing rather than relying on the label alone. It differs from non-recourse protection against specified credit risks.