Full-Recourse Debt Definition.

The term "full-recourse debt" refers to a type of debt agreement in which the borrower is fully responsible for repaying the debt, even if the collateral used to secure the loan is forfeited. In other words, if the borrower defaults on the loan, the lender can come after the borrower's personal assets to repay the debt.

Full-recourse debt is often used in situations where the collateral is considered to be high-risk, such as with start-up companies or businesses with a history of financial difficulty. This type of debt agreement gives the lender a greater level of protection in the event that the borrower is unable to repay the loan.

What are recourse terms? Recourse terms refer to the conditions under which a lender may seek repayment of a loan from a borrower. In the event that a borrower defaults on a loan, the lender may exercise its right of recourse to seek repayment from the borrower. The terms of recourse may vary depending on the agreement between the parties, but may include provisions for the lender to seize assets of the borrower, or to pursue legal action against the borrower. Who does non-recourse loans? Non-recourse loans are loans that are not backed by collateral. This means that if the borrower defaults on the loan, the lender cannot seize the borrower's assets to repay the debt. Non-recourse loans are typically used in situations where the collateral is not worth as much as the loan, such as with start-up companies. Is recourse debt included in basis? Recourse debt is included in basis when determining the amount of debt that a taxpayer can deduct for tax purposes. The basis is the original value of the investment plus any additional investment made by the taxpayer. Recourse debt is any debt that is secured by collateral and that the taxpayer is personally liable for. What are the types of factoring? There are several types of factoring, each with its own benefits and drawbacks. The most common types are:

1. Recourse factoring: With this type of factoring, the factor (lender) has the right to collect the entire invoice amount from the debtor, even if the debtor does not pay. This type of factoring is often used for large invoices, as it provides more protection for the factor.

2. Non-recourse factoring: With this type of factoring, the factor does not have the right to collect the invoice amount from the debtor if the debtor does not pay. This type of factoring is often used for small invoices, as it provides less protection for the factor.

3. Spot factoring: With this type of factoring, the factor provides funding for a single invoice. This type of factoring is often used for invoices that are due soon, as it allows the debtor to get paid quickly.

4. Forward factoring: With this type of factoring, the factor provides funding for multiple invoices. This type of factoring is often used for invoices that are not due soon, as it allows the debtor to get paid over time.

What is recourse debt in a partnership?

Recourse debt is a type of debt that allows the lender to seek repayment from the borrower and/or any guarantors if the borrower defaults on the loan. This type of debt is often used in partnerships, where the partners may be personally liable for the debts of the partnership.