No personal liability. Lenders may take the property pledged as collateral to satisfy a debt, but have no recourse to other assets of the borrower. Many lenders will offer non-recourse loans with â€œcarve-outsâ€ for waste, fraud or environmental issues.
Refers to a dealership whose arrangement with its "financing" sources is such that the dealership is relieved of any responsibility for its customers’ auto loans. Other than supplying background information on the applicant, this kind of dealership relies solely on the loan application decisions the bank makes. (See Recourse.)
No personal liability. Lenders may take the property pledged as collateral to satisfy a debt but have no ability to take the other assets of he borrower.
Where finance is raised to purchase a leased asset, the lender will have recourse to the assets held by the lessee in case of default, but not to the lessor/borrower.
A type of factoring where the factor assumes compl... more
Without obligation to pay. A type of factoring wherein once a factor purchases a receivable they assume complete responsibility for its collection. If the money owed cannot be collected, the client will not be held liable
A transfer of a contract from the seller to the lender, with the lender assuming the risk for loss if the loan defaults.
Generally, accounts purchased by the lender remains with the lender. The lender accepts full credit risk for any and all accounts for which it purchases.