You have to remember what recourse actually is.The problem with JD factors is that they do offer non recourse, but they reject so many customers. I looked in to JD Factors last year and i was told to stay away. We book our loads then very often JD factors rejects the customer. If you could accept more customers credit wise, you would have better success like so many of the local competitors. Even non recourse contracts have clauses that help them charge back their clients, I think you'd be better off offering recourse and getting more customers. I was told by a competitor of Jds that they have lost a lot of their base to other local Factoring companies. Just what i was told but look into it before signing up.
A non-recourse clause shifts the risk to the factoring company - if the customer does not pay, the factoring company has no way to collect on the funds from you. They have to rely their experience and due diligence to identify if they trust your customer's credit. If your customer is a very large freight broker out of the US with a valid FMCSA broker bond and the factoring company has other experience with them they will likely accept the customer. If your customer is small, has no FMCSA broker bond, and the Factoring Company's experience with them is limited then they will not want to take the risk. If they do not want to take the risk why would you?
A recourse clause shifts the risk to you and will allow you to obtain whatever customer you want because you take the risk that if the customer does not pay the Factoring Company within a period of time the Factoring Company will take the funds back from you. You get more flexibility with customers but the Factoring Company will not be overly aggressive to obtain the funds from your Customer. A recourse clause usually comes with a personal guarantee and maybe even a lien on personal property owned by the directors of the company.
Whichever clause you want to use, read the contracts very carefully. Factoring Companies exist for one reason only - cash flow. They offer you increased cashflow for a designated price. A non-recourse clause will be more expensive up front and much safer, a recourse clause is less expensive up front but if you're not going to help manage the risk for the Factoring Company you will find that it will come back to haunt you. Factoring Companies are much like banks and insurance companies - they rarely lose money.