THE LAWS OF CREDIT AND COLLECTIONS

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JOINT CHECK AGREEMENTS

Although these documents are used mainly in the construction industry, they can be used by any seller who drop-ships to their customer's customer, or any customer's customer who is willing to sign this.  

This simple document provides that the seller's invoice will be paid by the customer's customer, directly to he seller.  A UCC-1 Financing Statement should be filed to avoid problems in the event of a bankruptcy filing by the customer.   You should also make sure that the customer's customer is creditworthy.