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I have read the non recourse factoring agreement,

and these issues become obvious:

1)this is not the form of factoring which I mistakenly took for granted. It is at best a derivative form, but essentially
a loan agreement with receivables as collateral.

2)there's also a clause in the agreemnt stating this risk.

3)There's also a clause which extends the liability of TLC is the 'obligour' fails to pay. this essentially voids the
claim of non recourse.

It therefore becomes just anther form of off balance sheet accounting of loans and a method to lower DSO's.

Do you think so and/or is this why Jeff Goverman warned investors ?
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