Accounts receivable are the payments and amounts that a company will get from its clients and customers. For example, a company supplies orders to its customers on credit and as they agree to pay for the orders after some time, these customers are actually the accounts receivable. You can download Assignment Forms to assist you in preparing a legal Assignment Notice much quickly.
What is mean by Non-Recourse Accounts Receivable?
These are the accounts receivable that once transferred to a third party, can’t be transferred back or returned to the actual creditor no matter what the situations or circumstances are. It is also not possible to transfer back these accounts to the actual creditor even if the creditor wants to acquire them and demands for them.
Brief Description of Assignment of Accounts Receivable:
It may sound like something that companies can’t or won’t do but this is something that many organizations do in order to save their businesses and keep their companies from going bankrupt. For example, a company owner realizes that he has to arrange for quick cash in order to pay to the supplier or he will be out of business within short period of time. He doesn’t want to get loan and he can’t sell his assets in such short period of time so there is only one other option; assigning his accounts receivable to a third party and getting money from them. This is done by signing the assignment of accounts receivable with non-recourse agreement.
Key Elements of Assignment of Accounts Receivable with Non-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. non-recourse
- Claim from both parties that they understand it’s a non-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 Form for Assignment of Accounts Receivable with Non-Recourse,
Here is download link for this Assignment Form of Accounts Receivable with Non-Recourse,