Resource factoring is a form of finance where a company sells its invoices to a factoring company. The factor pays the company a percentage of their cash value and then chases up payment of the invoices on behalf of the company.
Once full payment is received the factor reimburses the company with the remaining balance of the invoice and this is all done for a fee.
The agreement with recourse factoring finance is that if an invoice is unpaid or paid late then the Company will have to absorb the costs not the factor and buy back the invoice.
Non-Recourse factoring is a form of finance where a company sells its invoices to a factor and receives a percentage of the cash value from them. The factor will then chase up the invoices and once full payment is received will reimburse the company with the remaining balance of the invoice. The agreement with non-recourse factoring is that, within certain conditions, if the payments are late or unpaid then the Factor absorbs the costs, the company does not have to worry about debt created by unpaid invoices.
The differences between recourse and non-recourse factoring are essentially who becomes liable for debt created by the non payment or late payment of invoices.
With recourse factoring finance if an invoice is unpaid or paid late to the factor then it is up to the company to buy back the invoices and either settle the debt or chase up payment with its customers.
With non-recourse factoring finance if an invoice is unpaid or paid late to the factor it is the factoring company who absorbs the debt.
Recourse and non-recourse factoring allows you to release cash quickly from your unpaid invoices.
As your lender, we can release up to 90% of your invoices within 24 hours. On payment of the invoice from your customers, we will then release the final amount minus any fees and charges. There are different types of invoice financing options available to businesses depending on the situation and the level of control they require in collecting unpaid invoices.
We are an invoice financing company who offer a solution whereby payments are collected on your behalf managed by our team of expert credit controllers so you can focus on running your business. Our Confidential Invoice Discounting solution is offered to businesses who want to maintain their own credit control processes, therefore this remains strictly confidential so your customers are unaware of our involvement.
Great service so far
14:20, August 27, 2021
Game-changer for our transport business
16:29, August 07, 2021
Excellent customer support
11:53, August 06, 2021
Excellent, friendly and effective
11:37, July 30, 2021
09:28, July 18, 2021