dangardner

Hi,

Quick question..

A none recourse factor agreement is negotiated. Later on in the question it says it will reduce bad debts from 1.5% to 0.5% of turnover.

In order to calc the saving in bad debts do I..

1. (0.015-0.005)*Turnover

or

2. 0.0015*Turnover

I thought a none recourse agreement meant a zero bad debt liability meaning option 2 would be correct but the wording of the question has confused me slightly.

Thanks

ADBot