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How Non-Recourse Factoring Works

Non-recourse factoring enables a business to unlock the working capital tied up in customer invoices without waiting weeks or months  for customers to pay, while simultaneously reducing (or eliminating) the organization’s financial risk from bad debt.  Take a closer look at the non-recourse factoring process by comparing these two scenarios:

Typical Receivables Timeline
Day 1: Creates a customer invoice for services rendered (or goods sold) in the amount of $7,500

Day 30, 45 or even 90+: Receive customer payment

Non-Recourse Factoring Receivables Timeline
Day 1: Creates a customer invoice for services rendered (or goods sold) in the amount of $7,500

Day 1: Factors the invoice with Corsa Finance at a rate as low as 5% of the invoice amount

Day 2 or 3: Receive $7,125 ($7,500 commission less $375 factoring fee)

The time your organization spends waiting between the day you invoice a customer and the day they make payment even has a name: opportunity cost. Opportunity cost refers to any opportunity (any and all ways you could put that working capital to work) you have to decline because you are waiting on a customer payment; such as:

  • missing out on chances to take on new accounts or larger customers
  • losing out on early pay vendor discounts
  • penalties for making late payments
  • inability to extend generous customer payment terms as a competitive advantage

You can eliminate opportunity costs like these by factoring invoices and receiving working capital immediately. Instead of chasing customer payments, you can stay focused on what is most important for your business instead.

Fast, Secure and Easy

Complete the application process today and get approved to factor invoices within 2-3 days or faster.

invoice factoring application

1. Apply online – it’s fast, easy and free.

submit invoices for factoring receivables financing

2. Submit only those customer invoices you wish to factor.

get working capital to grow your business by factoring invoices

3. Receive funds the same or next business day via wire transfer on factored invoices.

speed up cash flow using non-recourse factoring, factoring with recourse or non-notification factoring

4. Speed up cash flow to avoid opportunity costs and stay focused on building your business.

What is Non-Recourse Factoring?

There are two basic types of receivables financing: non-recourse factoring and full recourse invoice factoring. With both types of receivables financing, there are three parties directly involved:

  • An organization that invoices its customers for payment (the “client”)
  • The customer responsible for paying the invoice (the “debtor”)
  • A receivables financing company that factors the invoice (the “factor”)

With non-recourse factoring, a factoring company assumes the credit risk for invoices they factor, or purchase, from the factoring client. If a customer (or debtor) is unable to pay due to insolvency, the non-recourse factoring company absorbs the loss, not the client. With non-recourse factoring, clients rarely have to buy back an invoice. Generally this would only occur in the case of customer dispute; such as, the customer did not receive the shipment, refused delivery or returned it.

Full recourse factoring (or factoring with recourse) leaves the client responsible for the credit worthiness of its debtors. The factoring client may be required to buy the invoice back if their customer (the debtor) is unable to pay for any reason or fails to remit payment within a specified time period.

Why Choose Corsa Finance for Non-Recourse Invoice Factoring?

Our clients can receive the additional benefits non-recourse factoring provides at rates comparable to companies that factor with full recourse.

  • Competitive rates and high advances
  • No contract, short term and long term contracts
  • Outstanding customer service
  • No minimums – factor only when you choose
  • Small ticket factoring available
  • Free funding on factored invoices within 1-2 business days
  • Flexible, tailored programs
  • No application, due diligence or administrative fees

Plus, we look for reasons to say “yes!” and operate transparently with no hidden fees that can drive up the cost of receivables financing.