Non-Recourse

Non-recourse describes who absorbs the loss when an asset such as an insurance claim is not paid. When a claim is sold or financed on a non-recourse basis, the party that put up the cash carries the risk that the payer pays late, pays less than expected, or denies the claim outright. The seller keeps the money it already received.

This is the opposite of recourse, where the financier can come back to the seller to recover funds on an unpaid claim. With non-recourse, that path back does not exist. Once an eligible claim is purchased, its outcome belongs to the buyer, and a later denial does not reverse the cash already paid to the provider.

Non-recourse is a defining feature of a true sale rather than a loan or recourse factoring. There is no repayment obligation and no clawback, because the provider sold an asset it owned rather than borrowing against it. The price reflects that the buyer, not the seller, now owns the collection risk.

For a medical practice, non-recourse decides whether the capital you receive is truly yours or only borrowed against a claim that might still come back to bite you. If a payer denies an eligible claim months later, a recourse arrangement bills you for it and your budget unravels. Non-recourse keeps the cash in your account, so payroll and rent planning hold regardless of what the payer does next.

Copay purchases your eligible insurance claims on a non-recourse basis and pays you the next business day. A denied eligible claim is Copay's loss, not yours. There is no repayment, no personal guarantee, and no change to how your billing team submits claims, because you are selling an asset rather than taking on debt.

See how Copay purchases your claims.