Factoring Agreement Without Recourse In Queens

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

Description

The Factoring Agreement Without Recourse in Queens is a legal document designed to facilitate the sale of accounts receivable from a client (Seller) to a factor (Purchaser) without recourse to the client, meaning the factor assumes the risk of non-payment by customers. This agreement caters specifically to businesses seeking cash flow by allowing them to sell their invoices while minimizing financial risks. Key features of the form include the assignment of accounts receivable, which necessitates that the client delivers invoices approved by the factor, along with sales and delivery stipulations to ensure proper notifications to customers. Credit approval is required for sales, ensuring factors have oversight on the creditworthiness of customers. The form also details the responsibilities of the client regarding profit and loss statements, the power of attorney granted to the factor, and how disputes shall be resolved via binding arbitration. This agreement is particularly useful for attorneys, partners, and owners in businesses that generate regular credit sales, as it enables them to understand their financial landscape, the roles of each party, and to ensure compliance with legal frameworks. Paralegals and legal assistants can leverage this form when preparing documentation for clients engaged in factoring as a financing option, ensuring all aspects of the agreement are clear and correctly filled.