What characterizes factoring of receivables with recourse?

Factoring of receivables with recourse involves the provider retaining some responsibility for the receivables that are sold or factored to a third party. In this arrangement, if the patient does not pay their dues, the provider must buy back the uncollected receivable from the factoring company. This means that the provider bears the risk of non-payment and guarantees the receivables against default.

In contrast, other options describe characteristics that do not apply in a recourse arrangement. For instance, when a factoring company assumes all credit risk, that typically refers to non-recourse factoring, where the provider is not liable for unpaid invoices. Furthermore, receiving advanced payment without risk would also pertain to non-recourse arrangements, as the provider's risk in those scenarios is significantly lowered. Lastly, the idea of a loan secured by insurance policies doesn't relate directly to the specific mechanism of factoring receivables, which usually deals more with the purchase and sale of receivables rather than securing loans through insurance.

Thus, the characteristic of being liable for non-payment by the patient accurately captures what sets recourse factoring apart from non-recourse options.