Non-recourse financing is where the factor has no recourse against your business if your customer fails to pay the invoice. However, be careful to read your factoring agreements as many 'no-recourse' agreement are actually just a modified recourse agreement where the no-recourse only kicks in if the customer declares bankruptcy.
I also tend to lump in outright sales of accounts receivables into this category although factoring companies do exist that still follow a cash-advance pattern of a recourse factoring company. There are companies that will outright purchase your accounts receivables for pennies on the dollar and assume all of the collections risk. If you also control the accounts receivable purchase, you're not truly losing receiving pennies on the dollar, you're shifting assets out of the risky business into the low-risk accounts receivable company.
Contacting the law firm does not create an attorney-client relationship; only a written contract signed by both lawyer and client can form an attorney-client relationship. All use of this website is subject to the site's Disclaimer and by visiting this site you agree to the Disclaimer without modification. All prices listed on the website are subject to change without notice and are subject to the Disclaimer and the Prices page.
© 2015–2020 Law Office of James Ryland Miller, PLLC. All rights reserved. No portion of this website may be used, published, modified, reprinted, or aggregated without the express written permission of Law Office of James Ryland Miller, PLLC.
Law Office of James Ryland Miller, PLLC
1098 Ann Arbor Rd W #377
Plymouth, MI 48170
Mr. Miller is physically located in Plymouth MI and meets with clients in Arlington TX by appointment only.