How Factoring Works: Factoring is simply the sale of your open accounts receivable for immediate cash. Instead of waiting for slow-paying customers, J D Factors purchases your open invoices at an agreed-upon discount for cash you can use right away. J D Factors provides non-recourse factoring, which means we assume the credit risk - if an invoice you factor with J D Factors isn’t paid for a credit reason, you are not liable. Most factors are full-recourse, which means you still have to worry about default. Non-recourse factoring gives you immediate cash for your invoices without the hassle of collections.