Resources / Glossary / Non-recourse

Non-recourse

Last updated: August 2026

Non-recourse means the financing provider keeps the credit risk: if the buyer doesn't pay, the loss is the provider's, not the supplier's. No clawbacks, no reversal of the payment already made.

Why the word matters

Most factoring and many net-terms programs are recourse: a buyer default means the money is clawed back from you. The only question that matters when comparing providers is which one you're getting — in writing.

How Yellowpay applies it

An approved buyer's default is Yellowpay's loss. You keep the payment; your books show zero bad debt.

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