The fee for factoring without recourse is normally higher than it would be with recourse.

Name: The fee for factoring without recourse is normally higher than it would be with recourse.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Factoring without recourse means that the factor assumes all credit risk for the purchased invoices, so the fee will be higher to compensate for that risk. With recourse, the seller retains the credit risk and can therefore negotiate a lower fee.

The Fee for Factoring Without Recourse Is Normally Higher Than