I sold my medical business but not the A.R. The bank/lender signed agreement of sale ye allowed 3rd party endorsement of checks?
1 attorney answer
If you and your medical business owed the bank any amount of money borrowed by you to finance your medical business this is normal procedure followed when customers want to sell the business that was funded by the bank. The only other way would be for the bank to allow the buyer to assume your debt obligation--and give them a new business loan--which is normally not done by banks facing this situation. Why? Because the bank (obviously) does not want to make any new loans collaterilized by your old ARs. It is much easier for them to use your accounts receivable as they come in to repay your business loans. Giving your old ARs to the new (unknown?) buyer--and then trying to collect on an a new business loan from him--is way to risky for the bank. They want out--same as you did. .