Once the firm has sold its receivables, the non-recourse factors bear all the responsibility for collecting on the account.

Question

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Non-recourse factoring means that the factor assumes the risk of customer non-payment and is responsible for collecting on the account. Therefore, once a firm has sold its receivables through non-recourse factoring, the factor is solely responsible for collecting the payment and the firm bears no further responsibility for the account.

Once the Firm Has Sold Its Receivables, the Non-Recourse Factors