Types of Businesses that Benefit from Non-Recourse Factoring
While non-recourse isn’t for every business, there are many that can take advantage of it. Non-recourse factoring companies can provide a safe zone for businesses with a large amount of different clients. If a company is in urgent needs of funds but does not want to take a risk by having a recourse factoring plan, non-recourse factoring is a great option.
Imagine this, your business gets one of the biggest orders it has ever had. You don’t want to let this one slip away, but you don’t have the funds to cover the order. You look to a factoring company to get the funds to cover the order and ship to the client. Without thinking, you sign up for recourse factoring. Next thing you know, your client backs out of paying for their sale. You are left there to pay the factoring company for the money that they fronted plus fees.