Invoice discounting and debt recovery
A 'recourse factored' and 'invoice discounted' debt recovery service
If the business makes use of an invoice discounting or factoring service it is important to be aware of who is responsible for the collection of debts which occur when your customer(s) fail to pay.
If the business uses a recourse facility agreement then in the event of non payment the finance company will not take the risk of the debt collection on.
A recourse facility is a lower cost form of factoring because the business continues to take the risk of bad debt rather than the factoring company. This type of factoring is also easier to obtain as the underwriting tends to have less stringent rules about the business systems and payment history of customers.
Once the invoice is returned (recourse) the responsibility for collection rests with the business.
Contact us and use our recourse collection service.
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