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What is Modified Recourse Factoring?

April 26, 2017factoring modified recourse

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What is Modified Recourse Factoring?

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With Modified Recourse Factoring the Factor carries receivables/credit insurance and offers protection to the seller if the customer is unable to pay the invoice due to financial failure or bankruptcy. However, if the customer refuses to pay the invoice from a dispute over quality, delivery, or specifications, the Factor has recourse back to the seller’s other receivables.