What is Recourse vs. Non-recourse Factoring?

You may have heard the terms recourse and non-recourse when discussing temp staffing factoring or temporary agency finance. But what do these terms mean?

Recourse factoring is the most common form of factoring, especially in the staffing industry, and is the type of factoring TemPay provides. It means the staffing firm assumes the risk and losses for unpaid invoices.

Non-recourse factoring, on the other hand, means the factor assumes the risk of bad debt and is out money for an uncollectable bill. This is uncommon, and if a factor does offer it, it usually comes with a fee.