Non-Recourse Invoice Factoring versus Purchase Order Funding
By the number of calls we receive at BusinessCash.com, there is much confusion about Non-Recourse Invoice Factoring versus Purchase Order Funding. In this article, we will walk you through the steps of how each one them works. We will also tackle what types of companies each financing option is applicable to. What is Non-Recourse Invoice Factoring? Non-Recourse Invoice Factoring is a financial agreement between your business and a factoring company for financing based on accounts receivables against cash. It is available to any company that...
read moreRecourse Factoring vs Non-Recourse Factoring: Making the Right Choice
When making decisions, a company should consider all the potential short-term and long-term impacts on the business, not only to keep surviving on the market but also to succeed, grow and generate competitive advantages. It is common, in the business world, for companies to seek funding solutions on a continuous basis so as to smoothly run their operations, fulfill their orders as well as maintain and gain market shares. Traditionally, a bank loan is the first option for working capital for a company. However, most companies are not eligible...
read moreRecourse vs Non Recourse Factoring
There is a great deal of information on the internet about recourse vs non-recourse factoring. Much of it is wrong. When choosing a Factoring Company it is best that you understand what a factor is offering you. Recourse Factoring: This means that if the invoice is not paid by your client by a certain date, the Factoring Company can charge that invoice back to you or you can replace that invoice with another good invoice. In some ways, this is similar to a line of credit from a bank with a borrowing base as one of the loan requirements. If an...
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