Recourse period

The window after which an unpaid invoice triggers a repurchase obligation.

Why it matters

The recourse period clock starts at different points depending on the contract such as invoice date, purchase date, or due date. A short recourse period can trigger repurchase obligations quickly.

Related terms

Related article: What is invoice factoring?

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.