What is Non-Recourse Factoring or Without Recourse Factoring?

Non-Recourse Factoring or Factoring Without Recourse is an agreement within a factoring contract where the factor’s client does not have to pay back the factoring company if an invoice is not specifically paid due to bankruptcy of the client’s customer (the Account Debtor) under an invoice with credit protection in place. ECapital offers Credit Protection as part of our Non-Recourse Program.

Audio Definition/Pronunciation

  • Business Credit Protection

    There are two types of business credit protection. One protects you against hackers, employees, and thieves stealing assets from your company. The second insures that if your customers file bankruptcy, credit insurance pays for your losses.

  • Factoring

    Invoice Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to…

  • Process of Factoring

    The Process of Factoring is: Complete the factoring application and submit with the required documents (A/R aging, sample invoices, Vendor Agreements & Purchase Orders) Receive a written proposal outlining the terms and rates from the Factoring company Sign the proposal…

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