A type of factoring in which the factor pays the client for its purchase of accounts receivable after it has collected the accounts receivable from the account debtors. Collection factoring can be either non-recourse or recourse. In non-recourse collection factoring, if the factor is unable to collect an approved account receivable after it has matured, before the factor pays the client for the receivable, it must make a determination that the account debtor is financially unable to pay. Collection factoring is also known as retail factoring because the factor's client is typically a retailer. See Practice Note, Collection Factoring.