Honest comparison of features, costs, and best use cases. Updated 2026.
| Factor | Recourse Factoring | Non-Recourse Factoring |
|---|---|---|
| Liability | You buy back unpaid invoices | Factor absorbs credit risk |
| Cost | Lower (1-3% per 30 days) | Higher (2-5% per 30 days) |
| Customer Bankruptcy | You're liable | Factor covers (if non-credit) |
| Disputes | Always your responsibility | Always your responsibility |
| Approval | Easier | Stricter customer credit checks |
| Best For | Strong customer relationships | Worried about customer credit |
| Industry Standard | Default in most factoring | Available for premium fee |
Take our 4-minute quiz for a personalized recommendation.
Take Eligibility Quiz →