Recourse -non recourse accounting

No provisioning is required technically because future operating losses cannot have a provisiom. Factoring is securing against future operating loss which may arise due to low liquidity and imcreased borrowing coats. 

What is invoice discounting? Invoice discounting is probably the simplest form of invoice finance. As with all types of invoice finance, with invoice discounting you sell unpaid invoices to a lender and they give you a cash advance that's a percentage of the invoice's value. 

The probability of an outflow decides provisioning of receievables based on past expectations. Now a days the ecl model is used and not sure if its for as standards.  If you get 80% on invoice and did not get the money yet, you cant create a provision on it cause the transaction is not finalised. 

However

Dr. Provision for bad debt 

Cr. Receivables 

Contra entry can be made and when you receive the money from.lenders for full amount 

Dr. Bank

Cr. Provision for bad debts

When 80% is received and then for the rest of the amount

Dr. Bad debt expense

Cr. Provison for bad debt

For the 20% unrecoverable amount. 

From the above no need for a provisuon until you receive your amounts. Afterwards you can because it doesnt make any difference