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.