Multiple choice

If there is default of repayment by the buyer in case of factoring and the factor is able to recover the amount from the seller, it is called

  1. non-recourse factoring

  2. without recourse factoring

  3. recourse factoring

  4. bills discounting

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In recourse factoring, the factor does not take on the risk of bad debts. The factor will be able to reclaim his money from you even if the customer does not pay. The factoring agreement will specify after how many days of the due date, you must refund the advance.