Factoring

Factors set credit terms in all cases, regardless of whether the factoring agreement is non-recourse or with recourse.

In non-recourse factoring, where the factor bears the risk of bad debts, they will typically credit check customers before offering credit.
This is to assess the creditworthiness of the customers and mitigate the risk of non-payment.

In with-recourse factoring, where the company still bears the risk of bad debts, the factor may also be involved in assessing the creditworthiness of customers to determine the amount of financing they are willing to provide.

Factors have the authority to decide the time limit for settlement discounts to be given. They can determine the terms and conditions of the factoring agreement, including any settlement discounts offered to customers.
This can include setting the time frame within which customers must make payment to qualify for the discount.

Factors have the flexibility to tailor the credit terms and discounts based on their assessment of the creditworthiness of the customers and the specific needs of the company.

Factoring with non recourse decides on the credit terms – I have said this above

In non-recourse factoring, where the factor bears the risk of bad debts, they will typically credit check customers before offering credit.

Also factors with recourse do not usually agree on credit limits

I have also said that factor with recourse , “ may “ also be involved in assessing the creditworthiness of customers to determine the amount of financing they are willing to provide.
This means possibly!
But do not “usually” agree on credit limits.