Factor without recourse

Dear Mr Moffat,

I have a doubt about the answers provided for below questions. I hope you can help me to clarify it.

Question 1

A company is considering whether to employ a factor.
The factor will charge 2% of sale for non recourse service together with administration fee of 10.000 per annum.

Bad debts are currently 3% of sale and sale are 2M per year

What will be the net cost of benefit per year of employing the factor

Answer: benefit of 10,000 as the saving of bad debts has been included

Question 2 (from BBP)

LCo is considering whether to factor its sales invoices. A factor has offered L Co a non recourse package at a cost of 1.5% of sale and an admin fee of $6000 per annum. Bad debts are currently 2% of sales per annum and sales are $1.5m per annum.

What is the cost of the package of L Co?

28500 as non recourse the factor carries the risk of the bad debts.

Am I right if I say that in the first question the saving of bad debts has been included because the question asked for the NET COST and not for the COST as it has been asked in the second question?

Thanks

Gabriella