Factoring Agreement Document With Recourse In Phoenix

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Category:

Contracts - Factoring

State:

Multi-State

City:

Phoenix

Control #:

US-00037DR

Format:

Instant download

Description

The Factoring Agreement Document with Recourse in Phoenix is a formal contract between a factor (a financial institution) and a seller (a business) that outlines the terms under which the factor purchases accounts receivable from the seller. This agreement allows the seller to receive immediate funds based on their credit sales, while granting the factor the rights to collect those receivables. Key features include the assignment of accounts receivable, credit approval processes, warranty of assignment, and the assumption of credit risks by the factor. It also outlines the obligations of both parties, especially in managing returns and disputes. For completion, users must fill out their business details, including names, addresses, and specific financial terms such as discount rates and minimum reserves. The form is useful for attorneys, partners, owners, associates, paralegals, and legal assistants as it provides a clear framework for securing financing against accounts receivable, mitigating credit risks, and establishing recourse provisions that protect their interests in future transactions.

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FAQ

While advantageous, non-recourse factoring also has some drawbacks: Higher Costs: Non-recourse arrangements may involve slightly higher fees compared to traditional financing options. Limited Flexibility: Factors may have stricter criteria, leading to fewer approvals and smaller credit lines.

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.

There are two types of debts: recourse and nonrecourse. A recourse debt holds the borrower personally liable. All other debt is considered nonrecourse. In general, recourse debt (loans) allows lenders to collect what is owed for the debt even after they've taken collateral (home, credit cards).

(800) 421-4225.

Call (800) 860-7926 to speak with a customer service representative.

The Most Common Invoice Factoring Requirements A factoring application. An accounts receivable aging report. A copy of your Articles of Incorporation. Invoices to factor. Credit-worthy clients. A business bank account. A tax ID number. A form of personal identification.

The accuracy of any calculations or rates are not guaranteed, for accurate calculations, rates and advice please call Phoenix Capital Group, 623-298-3450.

Contact eCapital Today at 855.790. 0906 | eCapital.

Phoenix Capital Group is headquartered in Denver, Colorado with satellite offices in Irvine, California; Casper, Wyoming; Dallas, Texas; and Fort Lauderdale, Florida. Our rapidly growing client list of mineral owners and investors stretches across all 50 states.

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).