Recourse

Recourse is the right of a seller or lender to demand repayment from the buyer or borrower if the primary obligor defaults. In factoring, it permits the factor to claim payment from the seller if the receivables remain unpaid by the debtor.

Examples:

1. A lender demanding repayment from a borrower.
2. A seller demanding payment from a buyer.
3. A factor reclaiming funds from the seller due to unpaid receivables.