Non-recourse factoring is usually available only for reliable and solvent buyers. Such companies should have:
- A strong credit history
- Good payment discipline
- Stable financial standing
- Transparent reporting
Typically, these include:
- Federal retail chains and large distributors
- Corporations with strong business reputations
- Regular buyers (debtors) with proven payment discipline
- Industrial holdings, including those with government participation
The factor always evaluates the debtor and decides whether non-recourse factoring is possible and under what conditions.