Recourse or Non-Recourse Factoring

One of the most common ask question about factoring is the cost. Some companies will make pricing seem to be easy and straightforward, but it’s because they are most likely to have hidden and junk fees that you’ll only come to learn about later.

The main thing to look at is if it’s Recourse or Non-Recourse Factoring:

Recourse factoring is when a business sells invoices to a factoring company with an agreement to buy back unpaid invoices. Recourse factoring is generally more affordable since the company is agreeing to some of the risk involved in the transaction.

Non-recourse factoring is when a business sells invoices to a factoring company without the obligation of any unpaid invoices. For example, if the customers would revoke their payments or pay their invoices late the factor would be responsible for any loss, not the business.


US MED Capital


US Med Capital’s Medical Insurance Receivables Program provides capital to medical providers and healthcare businesses that accept commercial and government insurance. We understand the financial complexities associated with the healthcare industry, our Medical Factoring Program will improve the consistency of your cash flow and increase your bottom line.


Apply online today

We look forward to the opportunity to serve your financial needs. To speak with one of our business advisors call 888.585.5133.