A non-recourse receivables purchase is the outright sale of an unpaid invoice or insurance claim to a buyer who assumes the risk of non-payment, so the seller keeps the cash even if the claim is later denied.
What it means
In a non-recourse receivables purchase, a provider sells its right to collect on a submitted claim to a purchaser. The purchaser pays the provider upfront and takes ownership of the claim, along with the risk that the payer pays late, pays less than expected, or denies it. Because ownership transfers, the transaction is a true sale rather than borrowing against the claim.
The word non-recourse is the key. Recourse would let the buyer come back to the seller to recover money if the claim is not paid. Non-recourse means it cannot. Once an eligible claim is purchased on a non-recourse basis, the outcome of that claim belongs to the buyer, not the seller.
This structure is different from a loan, a line of credit, and recourse factoring. There is no repayment schedule, no interest, and no personal guarantee, because the provider is selling an asset it already owns rather than taking on debt.
Why it matters for your practice
For a medical practice, non-recourse is the difference between capital you can count on and capital that can be clawed back. If a payer denies an eligible claim months later, a recourse arrangement would bill you for it. A non-recourse purchase does not, so the cash you received stays yours and your planning holds.
How this relates to Copay
Copay purchases your eligible insurance claims on a non-recourse basis and pays 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.
Related terms
Written by Eitan Glick, CEO, Copay Inc.
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