Factoring Agreement Draft With Recourse In Washington

Category:

Contracts - Factoring

State:

Multi-State

Control #:

US-00037DR

Format:

Instant download

Description

The Factoring Agreement Draft with Recourse in Washington is a structured legal document that facilitates the purchase of accounts receivable between a factor and a client. Designed for users engaging in credit sales, this agreement outlines essential terms such as the assignment of receivables, sales and delivery of merchandise, and credit approval processes. Key features include the factor's right to collect accounts, risk assumptions, and financial reporting obligations. Additionally, it specifies conditions under which the factor can charge back amounts to the client and includes remedies in case of breach of warranty. Users are instructed to enter specific details like names, addresses, and percentage rates, ensuring the form accurately reflects their business relationship. This form is particularly useful for attorneys, partners, and legal professionals who need to ensure compliance with financial regulations while facilitating business transactions involving receivables. Furthermore, it serves business owners and associates looking to access immediate capital by leveraging their accounts receivable, making it indispensable for those seeking financial solutions through factoring.

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FAQ

The period of factoring usually extends from 90 to 150 days. In some cases, companies can extend this period beyond 150 days.

Factoring Application Applications vary depending on the factor's needs, but most of them ask for things like business and personal phone numbers, email addresses, and business details. Applications also normally ask for your business' industry sector and your monthly invoicing volume.

Recourse factoring is the most common and means that your company must buy back any invoices that the factoring company is unable to collect payment on. You are ultimately responsible for any non-payment. Non-recourse factoring means the factoring company assumes most of the risk of non-payment by your customers.

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.

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).