Factoring Agreement Sample With Recourse In Clark

• Category: Contracts - Factoring
• State: Multi-State
• County: Clark
• Control #: US-00037DR
• Format: Word; Rich Text

Description

The Factoring Agreement Sample With Recourse in Clark serves as a contractual document between a Factor, which is a financial entity, and a Seller (Client) engaging in business. This agreement allows the Client to sell their accounts receivable to the Factor, providing immediate liquidity and commercial credit against future receivables. Key features include the assignment of accounts receivable, sales and delivery of merchandise protocols, credit approval processes, and the assumption of credit risks, where the Factor assumes certain losses unless they pertain to 'Client Risk Accounts.' It highlights procedures for documenting transactions, managing payments, and specifying fees associated with the factoring service. The form outlines the responsibilities of both parties, including compliance with credit limits and providing financial reporting. It is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants who may need to negotiate or draft such agreements, ensuring clarity in the terms while managing financial risks effectively. The agreement's structure promotes an understanding of asset transfer, liability, and the operational checks necessary in factoring transactions.