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Return To Factoring FAQ Archive   What is the difference between non-recourse and recourse factoring? Answered By Editor The difference between recourse and non-recourse factoring is that in recourse factoring, should the debtor of that invoice not pay their invoice, the factoring company has the option to get the money owed directly from the business receiving the cash advance. Recourse financing means the business is held liable for the future payment of the payable invoice. With non-recourse factoring, 'should the debtor of the payable invoice not come through on the payment(s), the business is not responsible for the cash advance amount or fee. Instead, in non recourse factoring, the financing company is held liable for receiving payment from the payable invoice.' keywords: Factoring | Invoice Discounting | Accounts Receivables | Accounts Receivable Factoring | Cash Flow | Non Recourse Factoring | Recourse Factoring | Factoring Company Business Working Capital Small Business Venture Capital

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