Agreement Accounts Receivable Without Recourse In Ohio

• Category: Contracts - Factoring
• State: Multi-State
• Control #: US-00037DR
• Format: Word; Rich Text

Description

The Agreement Accounts Receivable Without Recourse in Ohio is a formal document that facilitates the sale of accounts receivable from a seller to a factor, enabling businesses to secure immediate funds. This agreement clearly outlines the assignment of accounts receivable as absolute ownership transferred to the factor, ensuring the seller is not held liable for losses after the transfer, except under specific conditions. Key features include the requirement for the factor’s credit approval for sales, the seller’s obligation to report any disputes or claims, and the handling of any returned merchandise. It emphasizes the process for invoicing, potential withholding of proceeds for contingencies, and the maintenance of accurate records. For attorneys, partners, owners, associates, paralegals, and legal assistants, this form is valuable for establishing a clear understanding of the rights and responsibilities in factoring arrangements, ensuring compliance with legal requirements, and providing a framework for dispute resolution through arbitration. Filling out the agreement requires careful consideration of credit limits and appropriate entries in business records. It serves as a practical tool for managing cash flow in businesses engaged in credit sales.