In the case of reverse factoring, the services provided to the Borrower by the Factor are:

➤ payment before the due date of a percentage of the invoice amount (e.g. 80%);

➤ amicable collection;

➤ and debt management. The risk of non-payment of the Debtor is borne by the Borrower, and if the Debtor is unable to pay the invoice amount, the Factor shall have a right of recourse (claim the amount initially advanced, e.g. 80%) against the Borrower at a date after the invoice due date set by the Factoring Agreement. 🧐

In the case of non-recourse factoring, the services provided to the borrower by the Factor are:

➤ payment before the due date of a percentage of the invoice amount (e.g. 80%);

➤ insurance of the Debtor's default risk (80%-100% of the invoice value);

➤ amicable collection;

➤ and debt management. The risk of default of the Debtor is transferred to the Factor and if the Debtor is unable to pay the invoice amount due to insolvency or prolonged default, the Factor shall transfer the insured amount (80-100% of the invoice amount) to the Borrower on a date after the invoice due date set by the Factoring Agreement. 🙂

❗⠀Importantto remember: Invoices affected by a trade dispute are not insured.