Non-Recourse Factoring - Invoice Factoring

Benefits of Non-Recourse Factoring

Reduce Financial Risk

Reduced financial risk for your company is just the beginning when you choose non-recourse factoring services. Non-recourse factoring also trims administrative overhead by reducing the time and resources spent on accounts receivable activities. Some clients choose to retain control of customer invoicing. Others assign the task to the non-recourse factoring company, thus nearly eliminating the need to devote resources to accounts receivable activities.

More Benefits of Non-Recourse Factoring

Here are some of the benefits you may receive using non-recourse factoring services:

High advances up to 95% with low-to-no holdbacks
Factoring fees as low as 5% (or lower, ask about volume discounts)
No monthly minimums – factor only when you choose to
No long term contracts
No application fees
Free customer credit checks
No due diligence, credit check or any other hidden fees

Request a no obligation, no cost non-recourse factoring quote and get answers in 24-48 hours or even less to find out how factoring can expedite cash flow while, at the same time, reducing or even eliminating your company’s financial risk from bad debt.

GET A FREE, NO-RISK QUOTE

Fast, Secure and Easy

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

1. Submit an online inquiry – 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.

How Non-Recourse Factoring Works

Unlock Working Capital

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

Today: 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

AND

Factors the invoice through a Corsa Finance specialty factoring partner

Day 2 or 3: Receive $7,125 ($7,500 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

Reduce Opportunity Costs

You can reduce 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.

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) cannot pay due to insolvency, the 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 when 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 creditworthiness 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.