RECOURSE & NON-RECOURSE FACTORING
Obtaining Funding for Your Company
Factoring (or accounts receivable financing) is a simple transaction that allows small and medium-sized companies to use their own client accounts to gain the assets you need. There are different types of factoring, such as recourse and non-recourse options. Recourse means that the client will take responsibility for the payment of the invoice if anything should happen. Non-recourse factoring allows you to sell your invoices to the factoring company so that they assume any credit risks for collection.
Factoring is often used in a wide range of industries, such as:
If your company uses 30-, 60-, or 90-day terms for invoices with your clients, factoring may be right for you. We would be happy to answer your questions about factoring and explain more of the differences between recourse and non-recourse factoring. To learn more about our factoring services at Summit Business Financing, please call our office at (201)-963-9185 today!