Broker Agreement for Factoring | USA

Factor the receivables of a business with this package of Assignment of Accounts Receivable forms which contains two templates:

1. Assignment with Recourse. The assignee has recourse to re-transfer back any customer account which is not paid in full within a specified time period, and the assignor will buy them back for the amount of the unpaid balance.
2. Assignment Without Recourse. The assignor does not have the option to take back the accounts if they remain unpaid. The right to collect the unpaid accounts remains with the assignee.

An assignment of your accounts receivable is a quick way to increase cash flow during slow periods. These are downloadable forms that you can use again and again.

Purchase accounts receivable from Canadian companies with this Factoring and Accounts Receivable Security Agreement with Limited Recourse.

• Under this Agreement (also called a debt purchase contract), a company needing cash for operations sells its accounts receivable to a factor for an immediate cash injection, at a discounted rate off the face value of the accounts.
• The factor has only limited recourse against the seller for the amount of any receivable which is not paid or disputed by a customer, plus interest on unpaid accounts, up to a predetermined limit.
• The factor will also pay the seller any excess funds received by the factor on customer accounts.
• This legal contract template is available in MS Word format.
• Governed by Canadian laws and intended for use only in Canada.