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Types of Invoice Factoring

There are several types of invoice factoring, each tailored to different business needs. Recourse factoring is the most common, where the business retains some liability if the client fails to pay the invoice. Non-recourse factoring, on the other hand, transfers the risk of non-payment entirely to the factoring company, though this option may come with higher fees. Spot factoring allows businesses to factor individual invoices on an as-needed basis, providing flexibility for companies that don't want to commit to factoring all their receivables³.