What is the difference between NON RECOURSE and RECOURSE factoring?

When an invoice is purchased by the factoring company on a non-recourse basis, the factor takes the credit risk. In other words, if the account debtor does not pay an invoice because of a credit problem TBS will take the loss. When an invoice is purchased under a recourse arrangement, the client is responsible for repayment of an invoice if an account debtor does not pay for the invoice.

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