FAQ: What happens if an invoice isn't paid?
What happens if an invoice isn't paid?
In the event of a bad debt (the customer does not pay an invoice), the obligations of the borrowing company will depend on whether the Debtor Finance Facility is a Recourse Facility or a Non-Recourse Facility.
If the facility is a Recourse Facility, any funds advanced will need to be repaid to the finance company. If the facility is a Non-Recourse Facility, the bad debt will be covered by insurance and no repayment will be required.
Please note that this information is of a general nature only. You should consult an accountant to obtain information specific to your situation.
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