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Hi sir,
May I know what is factoring with maximum recourse.And should I derecongise the receivables if a company choose this factoring service?
Thank you..
If you factor with recourse, the factor can come back and claim the money back from you if they cannot get the money from your customer.
In these circumstances the receivable will not be derecognised.
The money from the factor will be booked as a liability
If there is no recourse then the receivable can be derecognised
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