Factoring Agreement Draft With Recourse In Miami-Dade

Category:

Contracts - Factoring

State:

Multi-State

County:

Miami-Dade

Control #:

US-00037DR

Format:

Instant download

Description

The Factoring Agreement Draft With Recourse in Miami-Dade outlines a formal contract between a factor and a client, where the client assigns accounts receivable to the factor in exchange for immediate funds. The document specifies that the factor purchases these receivables without recourse, with defined exceptions for 'Client Risk Accounts', thereby protecting the factor from certain customer insolvencies. It details procedures for invoicing, credit approvals, and responsibilities for both parties concerning merchandise and financial disclosures. Key features include provisions for the assignment of rights, assumptions of credit risk, and requirements for regular profit and loss statements. This form is particularly useful for legal professionals such as attorneys, partners, owners, associates, paralegals, and legal assistants who engage in business financing. By utilizing this agreement, they can streamline the funding processes for businesses and mitigate risks associated with credit sales while ensuring compliance with legal protocols in Miami-Dade.

Difference between factoring and assignment

View this form

Accounting for equipment finance agreement

View this form

Change or Modification Agreement of Deed o...

View this form

False Tax Return, List, Account, or Statement

View this form

Demand for Accounting from a Fiduciary

View this form

Clauses Relating to Venture Ownership Inte...

View this form

Sponsor's Motion and Oath of Admission

View this form

Direct Deposit Form for Chase

View this form

12.3.1 Validity

View this form

Form popularity

FAQ

The agreement with non-recourse factoring is that, within certain conditions, if the payments are late or unpaid then the factor absorbs the costs, the company does not have to worry about debt created by unpaid invoices.

How to Record Invoice Factoring Transactions With Recourse Record a credit in accounts receivable for the sold invoice in the amount of $375,000. In the recourse liability column, record a credit after estimating the bad debts and any other possible losses ($750).

This will help you understand your rights and options. Contact the factoring company. Talk to the factoring company directly and explain the situation. Ask them why the release hasn't been issued yet and when you can expect it. Be polite and professional, but be firm in your request. Get everything in writing.

With recourse factoring, the business is responsible. But with non-recourse factoring, the factoring company is responsible, although there may be some stipulations based on the terms of the agreement. Higher advance rates (i.e. amount of funding you receive upfront). Lower advance rates.

Factoring without recourse means that the risk of accounts receivable being uncollectible transfers from the buyer to the seller. Basically, if an accounts receivable cannot be collected, the seller does not have to reimburse the buyer like they would if the factoring was “with recourse”.