Factoring Purchase Agreement With Credit Card In Clark

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

Description

The Factoring Purchase Agreement with Credit Card in Clark is a structured legal document between a factor (lender) and a seller (client) to facilitate the sale and purchase of accounts receivable. This agreement allows the client to receive immediate funds by assigning their receivables, which the factor then purchases without recourse, meaning the client does not have to guarantee payment. It includes key features such as assignment protocols, rights regarding credit approval, management of merchandise, and provisions on profit sharing and reserves. Filling instructions emphasize precise documentation of receivables, and the need for notifications and compliance with established credit limits. This form is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants involved in facilitating business financing, as it clarifies the obligations and protections for both parties in a factoring arrangement. The legal structure also includes warranties about the solvency of the client and rights to enforce collections. Overall, this agreement streamlines the process of obtaining working capital from receivables while ensuring the credits are adequately managed.