The Best Factoring Accounts Receivable With Recourse Ideas
The Best Factoring Accounts Receivable With Recourse Ideas . Web although factoring companies are in business to purchase receivables, there is a systematic tendency for factors to restrict their without recourse purchases to a seller’s highest quality (or least risky) receivables. In such cases, the factor can seek ‘recourse’ from the seller to recover the unpaid amount. Factoring Receivables Double Entry Bookkeeping from www.double-entry-bookkeeping.com Recourse means that should a borrower’s customer not pay, the factoring company will retain “recourse” over the borrower (the vendor), meaning they can demand repayment. Recourse factoring is the most common and means that your company must buy back any invoices that the factoring company is unable to collect payment on. It allows companies to obtain immediate cash by selling their right to collect payment from receivables to a third party at a discount.