Debt Factoring Domain Name For Sale



Non-Recourse Debt Factoring

Debt Factoring is the sale of accounts receivables from an operating business to a specialized finance company known as a factor. This is performed at a discount and subsequently the factor must collect receivables from the customers directly.

Factoring agreements come in two forms. They can either be recourse factoring agreements or non-recourse factoring agreements.

Non-recourse debt factoring means that the factor assumes the risk of any uncollectible receivables or bad debts. In other words, he has no recourse against the business who sold the receivables.

Non-recourse factoring carries a higher discount that recourse factoring to including the bad debt risk that is being assumed by the factor.

 Debt Factoring