what is without recourse 
 without recourse means that one party cannot obtain a judgment against or reimbursement from a defaulting or opposing party in a financial transaction when the buyer of a promissory note or other negotiable instrument enters into a no recourse agreement they assume the risk of default understanding recoursefinancing can be extended with or without recourse under financing with recourse if the lender cannot collect on their payment from the party ultimately responsible for payment of the financial obligation the lender can go back to the borrower to seek payment on the amount due recourse may allow the lender to seize not only pledged collateral but also deposit accounts and sources of income conversely without recourse financing means that the lender takes the risk of non payment by the obligor the lender takes these risks directly and cannot seek payment or seize personal assets not specified in the debt contract sales without recourse without recourse means without liability all sales agreements entered into by a buyer and seller contain rights and responsibilities for both parties a sale without recourse means the buyer accepts all risks associated with the purchase this often occurs when items are sold as is without any guarantees the buyer has no recourse against the seller if the item does not work as expected and the seller is not obligated to compensate the buyer for any damages defects or performance issues a sale that is with recourse means that the seller bears responsibility for the sold asset if it turns out to be defective or does not perform as expected the buyer has the right to seek recourse from the seller who is often obligated to offer a replacement of equal value or provide a refund without recourse in banking