Recourse factoring is the usual market name for factoring with recourse: a business sells its unpaid invoices to a factor for an immediate advance, but if a customer has not paid after an agreed period the factor can require the business to buy the invoice back or replace it. The main entry describes the mechanics, pricing and accounting.
The two expressions are interchangeable. Recourse factoring is the term factors and brokers use, while accounting standards and legal documents speak of a transfer of accounts receivable with recourse. In both, the credit risk of the customers stays with the seller, so the factor is mainly relying on the seller's own financial strength. The recourse period is commonly 60 to 120 days from the invoice date.
Because the factor takes less risk, fees are lower and approval is easier than under non-recourse factoring, which is why recourse terms are the more common form for small businesses. The trade-off is that the seller usually cannot treat the transaction as a sale for accounting purposes and must show the advance as borrowing. It is one variety of receivables factoring.