Non Recourse Factoring

When a business sells its accounts receivable to a non-recourse factor, the factor owns the debt and the risk, with the notable exceptions of disputes, fraud or non-legally enforceable indebtedness. Additionally, if the buyer is unable to pay due to cashflow problems or insolvency, the non-necourse factor is stuck with that debt, with no recourse to the seller.

Non-recourse factors typically charge more than recourse factors due to retention of the credit risk. credit insurance is often used as part of a non-recourse factoring arrangement, with the non-necourse factor using its own policy.

Latest Articles

Credit Insurance and COVID 19
by Parker Freedman, President ARI Global, Inc.

Business Credit Insurance Glossary of Terms
by Heather Smart Johnson

Trade Credit Insurance FAQ
by Heather Smart Johnson

Protecting Your Business In Times Of Uncertainty
by Heather Smart Johnson

Borrowing Calculator

See how much more you can borrow by having Credit Insurance.

Take a Survey
Contact a Professional

Want to speak to a professional about your Credit Insurance needs?