A factor is a finance company or bank that buys customer receivables from a business—for a fee, of course—and then collects the balance due directly from the customers. Selling (or factoring) your customer receivables may result in a receipt of cash sooner than normal in the regular course of business. You may sell receivables either with or without recourse. If you sell a receivable without recourse, the purchaser assumes the risk and absorbs the credit loss if a customer defaults on payment. On the other hand, if you sell a receivable with recourse, you guarantee payment to the purchaser of the receivables if the customer does not pay.
Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA (Opens in a new Window)/SIPC (Opens in a new Window). UniVest Financial Services is a trade name of UniBank. Infinex and UniBank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of, nor guaranteed or insured by, any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.