In the event of invoice discount facilities it is the factoring company that may have recourse against the client and not the other way around. The amounts that have been paid to clients for the discounted invoices are included in the balance sheet and are therefore already subject to capital requirements. There is credit risk associated with invoice discount facilities, but the risk can be reduced if the factoring company has a contractual right to change the limits of the facilities with immediate effect when the assumptions used for setting the limit change. Accordingly, we ask both for a further explanation of the term "invoice discount facilities" and how such facilities may be classified as off-balance sheet items.