Recourse is a word that in this industry means the right of recourse of the claim.
If the invoice recipient is not creditworthy for the amount, we still have the opportunity to finance the invoice against recourse.
We know that a credit report always doesn't tell the truth and that in many cases your relationship with customers weighs much, much heavier. Years of work together obviously create more trust than we can see from the Enlightenment.
Borrowing the invoice against recourse does not change the price you have with us or how many percent of the principal you receive. You always get 100% of the amount, minus our fee.
Should the invoice be unregulated 30 days after the due date, we have the option to settle this against your client account and deduct it on future claims - however, we will always help you to pursue the claim so that the money eventually comes in and the debt is settled.
Regress is about who should take the risk if your customer does not pay the invoice. If you sell your invoice with regress, you take the risk and end up paying if payment fails. It's just going to be your loss. In case of invoice purchases without recourse, the person who buys the invoice also takes over the risk.
In practical terms, it means that if the factoring company pays you an amount that someone else is actually obliged to pay, they then have the right to claim the amount from you if the person who was originally liable for payment does not pay.