With or Without Recourse

In the case of ‘with recourse’, the finance provider relies on the seller (of a receivable or claim) for any shortfall in the event of non-payment. In a ‘without recourse’ facility or agreement the finance provider accepts the credit risk of non-payment itself. Recourse to the supplier is maintained for warranties given in respect of, or disputes arising out of, quality of goods, fraud, and the veracity of the transaction.

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