There are a few marketplaces and exchanges for trading receivables . Let's take a look at re:factor key differences.
Should a buyer of goods (debtor) fail to make a payment in a specified period of time, most of the platforms require supplier of goods (receivables seller) to repay the debt instead. Such transactions are said to be executed with recourse to receivables sellers.
Unlike on other platforms, sellers on re:factor platform can benefit from using non-recourse model. In such case a seller will get protection against debtors bankruptcy or late payment in addition to receivables financing. When sellers choose any of this two models (recourse or non-recourse), re:factor informs investors about the sellers request, recommends maximum risk exposure limits and provides professional advice on associated risks. Based on that information investors will be able to make a deliberate decisions about proposed investment. A seller will be able to switch from non-recourse to a recourse transaction to facilitate the trade, should investors be unwilling to accept the risks.
Re:factor may also offer investors a bad debt protection service, so investor could obtain a right to claim a delayed payment not only to seller, but sequentially to re:factor as well. Needless to say, such option sufficiently lowers investment risks.
I think investors will be happy about this. With the help of these features they will be able to choose the most convenient strategy for themselves and manage the risk.
I like it when developers take care of users and offer them a variety of options. This is good for those who prefer to use flexible strategies in their work.