Non-recourse factoring refers to the fact that the factor gives up the right of recourse to the supplier after financing from the supplier by means of creditor's rights transfer, and the risk that the buyer refuses to pay or is unable to pay is borne by the factor alone.

The waiver of recourse by the factor is relative and can be stipulated in the contract. Generally speaking, when the debtor has credit risk (that is, inability to pay or bankruptcy, liquidation, etc.), the right of recourse is abandoned. ), and the accounts receivable cannot be recovered due to business contract disputes, the factor still enjoys the right of recourse against the supplier.

In the current international factoring business, non-recourse factoring business is the mainstream.

Non-recourse factoring does not mean that the factor has no recourse to the supplier under any circumstances. The difference between non-recourse factoring and recourse factoring is that the latter can exercise recourse to the supplier when the accounts receivable cannot be recovered for some reason, while the former is relative and can be stipulated in the contract.