What is it?
DirectLenderMatch classifies Recourse Invoice Factoring under the financing form “Receivables purchase.” Its typical use in this directory is: Sell receivables for immediate cash.
How does it work?
The structure is generally evaluated, supported, or secured using the following basis: Accounts receivable with seller recourse. Exact underwriting, eligibility, terms, and availability are provider-specific and can change.
What can it be used for?
Sell receivables for immediate cash.
What backs or supports it?
Accounts receivable with seller recourse.
Why does this structure exist?
This structure provides a defined way to address the financing need described above. The provider, transaction, collateral, and underwriting context determine how the structure is implemented in practice.
Important considerations
Confirm current costs, risks, licensing, eligibility, collateral treatment, recourse, tax consequences, and availability directly with the provider and appropriate professional advisers. DirectLenderMatch does not compare rates or recommend products.
Is this actually a loan?
Workbook classification: No. Financing forms such as leases, purchases, shared equity, advances, and guarantees may solve a funding need without being conventional loans.
Verified lenders or providers
Direct factoring / finance provider
eCapital
eCapital currently documents invoice factoring and specifically distinguishes recourse and non-recourse factoring.
Official evidence page →Last verified: 2026-08-23
Related financing structures
Non-Recourse Invoice Factoring
Sell receivables and transfer defined credit risk
Invoice Discounting
Obtain cash while often retaining collections
Accounts-Receivable Line of Credit
Borrow against unpaid B2B invoices
Trade-Receivables Securitization
Raise term/revolving funding against receivable pool
Asset-Backed Securities (ABS) Warehouse Facility
Aggregate assets before term securitization
Borrowing-Base Asset-Based Revolver
Working capital tied to current assets