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hi, is there’s is any difference in the calculation if the factoring is non-recourse or recourse?
like, whether to add the bad debt at cost before factoring or subtract it at cost of factoring, can someone explain, i get a little confuse here.
Non-recourse means that the factor suffers any irrecoverable debts (and so the company does not suffer any – they have a saving of all the current irrecoverable debts)
With recourse means that the company will still suffer bad debts – the only saving they might make is if using the factor results is fewer irrecoverable debts.
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