Non-Recourse Sale

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Definition: Non-Recourse Sale

Non Recourse sale is a sales without recourse. Non Recourse sale is a transaction in which the lender of a debt involves a third party in case the debt goes bad and is not being recovered. The third party gives a fixed amount which is in proportion to the debt amount. Now the third party can recover the debt from the debtor. The original lender got some money from the bad debt and third party has chance to gain from collecting.

The risk however is what if the third party is not able to recover any debt from the debtor. This would mean loss of what they paid to original lender. 

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