Recourse means that the factor assumes the credit, political, and foreign exchange risk for the receivables it purchases.

Name: Recourse means that the factor assumes the credit, political, and foreign exchange risk for the receivables it purchases.
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Question

Quizplus · Accepted Answer

Recourse means the seller of the receivables (the client) retains the risk for the receivables; if the debtor fails to pay, the factor can demand repayment from the seller. Non-recourse factoring is when the factor assumes the credit risk.

Recourse Means That the Factor Assumes the Credit, Political, and Foreign