Recourse – You, the client, ultimately takes the responsibility for the payment of the invoice. Normally if an invoice isn’t paid by a certain date (90 days from invoice date), the client must repurchase the invoice, sometime called a buy back.
Non-recourse – This is when the client sells their invoices to the factoring company, who will assume all of the credit risks for the collection of the invoice.
Some factoring companies offer both recourse and non-recourse factoring. Typically recourse factoring cost less as the credit risk is placed with the client, not the factor.See Today's Rates