So you’ve decided that it’s time for your business to work with a factoring company. Now, it’s time to decide which services to use. The company may say that they offer recourse and non-recourse billing services, but what does that mean? The better question is which of these services is best for your business.

Recourse Billing

Recourse billing is when a factoring company purchases your business’s accounts receivable. If a client of yours fails to pay for services within 90 days of the invoice date, you can repurchase the invoice. This type of billing is good for all business industries, but it’s typically used for transportation, oil and gas, manufacturing, engineering, and industrial maintenance.

Non-Recourse Billing

Non-recourse billing works similarly in that a factoring company purchases your business’s accounts receivable. The factoring company will do the credit work on your clients, and if they fail to pay the invoice, the liability falls on the factoring company instead of your business. Truck dealers, auto dealers, parts suppliers, oil and gas companies, and repair shops can benefit best from this type of billing.

Corporate Billing Offers Both!

Corporate Billing offers both recourse and non-recourse billing services. CB offers these services with low fixed rates and no additional fees. These services are also offered contract-free and with online monitoring, so you’re never in the dark about your accounts. If you’re interested in learning more about recourse and non-recourse billing or the benefits of working with Corporate Billing, contact us today.