What is NON-RECOURSE FINANCING?

1. Agricultural Financing: In the event of crop fails or insufficient crops which results in the failing of the collateral, the lender cannot claim the loan amount from the borrower. Government schemes usually guarantee such loans. 2. Dealer Financing: The guarantee for the genuineness of the document is the only liability applicable to the dealer. The lender cannot claim from the borrower if the buyer fails on loan payment. 3. Export financing: An exporter who is paid against export invoice is not liable the importer’s inability to pay. 4. Factoring: The risk of non payment by the debtor is assumed by a factor. 5. Project financing: The only source of repayment of the loan depends on t he cash inflows for the project and the collateral used to secure the loan.

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