Assignment Form of Accounts Receivable with Recourse

The money that people i.e. clients and customers owe to a company or organization is known as accounts receivable and when the actual creditor can transfer these accounts to a third party whereas the third party also has the right to return or transfer back the accounts to the actual creditor, it is known as the accounts receivable with recourse. Please review and download our collection of free Assignment Forms that can assist you to print your own Assignment Notices.

Introduction to the Assignment of Accounts Receivable with Recourse:

In certain situations, a company owner decides to give the rights of his accounts receivable to a third party and ask him to collect money from these points. To complete this process, the assignment of accounts receivable with recourse is signed by the both parties. According to this agreement, the creditor allows the third party or assignee to receive money from these accounts on his behalf and pay him a certain percentage of that money in advance to the creditor.

Difference between Recourse and Non-Recourse Accounts Receivable:

As you know, there are two types of assignments of accounts receivable; recourse and non-recourse. With recourse assignment, the assignee has the right to claim for the remaining amount from the creditor if these accounts don’t return the money where on the other hand, in non-recourse assignment, once the transfer of the accounts is done, the assignee can’t hold the creditor responsible for any outstanding amounts.

Key Elements to include in the Assignment of Accounts Receivable with Recourse:

  • Name of the actual creditor with complete address
  • Name of the new creditor or assignee who will receive the payments with complete address
  • Date when the assignment agreement is being signed
  • Reasons for assigning the accounts receivable to new creditor explained by the previous creditor (if applicable)
  • Details of the accounts receivable that are being assigned to the assignee i.e. dates for each account, amount of each account and purpose of each account etc.
  • Date from which the new creditor will have the ownership on the accounts receivable
  • Indication towards the type of the accounts receivable i.e. recourse
  • Claim from both parties that they understand it’s a recourse accounts receivable assignment
  • Compensation given by the assignee to the actual creditor in exchange for the accounts receivable
  • Signature of both parties i.e. previous creditor and assignee with witnesses

Here is preview of a Free Assignment Form of Accounts Receivable with Recourse,

Assignment Form of Accounts Receivable with Recourse

Here is download link for this Assignment Form of Accounts Receivable with Recourse,

Download Assignment Form of Accounts Receivable with Recourse

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