Manhattan Factoring Corp. v. Orsburn

Frank Holt, Associate Justice.

This appeal results from a business transaction between appellant and appellees. The appellees are in the poultry processing business. For several years they had borrowed their necessary capital from a bank where their line of credit was $100,000.00. Two of appellees’ customers became questionable credit risks. Upon advice of the bank, the appellees responded to appellant’s advertisement offering to guarantee or purchase accounts receivable. After several conferences, the appellant and appellees entered into an “Accounts Receivable Agreement”, also known as a…