With recourse factoring, you're responsible for the debt if your customers don’t pay. With non-recourse factoring, the factoring company accepts the loss for nonpayment. Many, or all, of the products ...

Recourse – The borrower (or guarantor) is personally liable for the full amount of the loan, including any debt remaining after the collateral is foreclosed upon and sold. To satisfy the remaining ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. A recourse is a legal agreement that gives the lender the right to pledged collateral if the ...