Factoring Company- Glossary > Factoring Terms > Bad Debt/ Charge Back


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This is the amount that a factoring company will write off in the event that an account does not pay their invoices. In some factoring relationships the business who sold the invoice is responsible for paying the factoring company back (recourse), while other financial arrangements do not require this re-payment (non-recourse).

Last updated on September 26, 2009 by FACTOR KING, LLC