The correct answer is: B. Without Recourse Factoring
In without recourse factoring, the factor assumes all the risks associated with the receivables, including bad debts. This means that the factor will not look to the seller for payment if a buyer defaults on a debt.
In with recourse factoring, the seller retains some of the risk associated with the receivables. This means that the factor may look to the seller for payment if a buyer defaults on a debt.
Pure factoring is a type of factoring in which the factor assumes all the risks associated with the receivables, including bad debts. This means that the factor will not look to the seller for payment if a buyer defaults on a debt.
Recourse factoring is a type of factoring in which the seller retains some of the risk associated with the receivables. This means that the factor may look to the seller for payment if a buyer defaults on a debt.
In conclusion, bad debt cost is not borne by factor in case of without recourse factoring.