There are basic kinds of factoring:
• Recourse factoring
• Non-recourse factoring
Recourse factoring
In case of default by the third person (debtor) of the contractual obligations when due hereunder, the Factor has the right to return the right of the money requirement to the Client with the subsequent compensation by the Client of the sum of financing and commission for factoring service.
Non-recourse factoring
In case of default by the third person (debtor) of the contractual obligations when due hereunder, the Factor has no right to return the right of the money requirement to the Client.
 Classical factoring of the American sample assumes complete service of the supplier (open factoring without the right of recourse). However here it was scientifically complemented and was modified: at first have appeared factoring with the right of recourse or recourse factoring and closed factoring or other words non-recourse factoring, and then and its other variants.
The reference of these variants or combinations of their elements to actually factoring is a debatable question for economists and lawyers. One considers factoring only complete service both without, and with the right of recourse. Others believe, that the majority of updating deforms essence factoring of service, being only close factoring by operations with the debt requirements faster.
To distortions, in their opinion, the following concerns:
1. The account of the invoices can not be referred to factoring, as there is no transfer of the account of sales, invoices usually is expendable operation which is carried out on confidential, frequently to confidential basis and not on all revolution;
2. Factoring with the right of recourse is reduced, in conformity with this sight, to credit operation;
3. Loosed factoring can not be considered factoring, as the supplier continues the debt requirements independently.
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