Non Recourse Factoring provides a certain amount of bad debt protection. In addition to providing cash up 85% of the customers unpaid invoices, bad debt protection is provided against unpaid invoices. However there are two very different schemes run by bank owned factoring and independent factoring companies. Banks can provided blanket cover with their bank owned innsurance scheme. Independents provide insurance offered by 3rd party companies. This is usually provided at a cheaper rate than the customer would get if they went direct to the insurance company themselves. Both schemes have their pros and cons.
Tags: Factoring
