Factoring Agreement General Formula In Fairfax
Category:
State:
Multi-State
County:
Fairfax
Control #:
US-00037DR
Format:
Word;
Rich Text
Instant download
Description
The general form of the Factoring Agreement in Fairfax outlines the terms under which a factor purchases accounts receivable from a seller (client) to provide immediate cash flow. Key features of this form include the assignment of accounts receivable, responsibilities for sales and delivery of merchandise, credit approval processes, and assumptions of credit risks. The agreement necessitates the seller to notify customers about the assignment of their accounts to the factor, ensuring clear communication. Additionally, it provides guidelines for payment terms, including commission rates and interest on advances. Filling and editing instructions emphasize the need for accuracy in entering the names of the parties and specifics regarding the business operations and credit agreements. This agreement is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants who need a structured document for managing business financing through accounts receivable. It also serves as a crucial tool for preventing disputes related to credit risks and ensuring compliance with contractual obligations.
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FAQ
The factoring agreement will also include representations that each factored account is bona fide and represents indebtedness incurred by the customer for goods actually sold and delivered to the customer; that there are no setoffs, offsets, or counterclaims against the account; that the account does not represent a ...
A factoring relationship involves three parties: (i) a buyer, who is a person or a commercial enterprise to whom the services are supplied on credit, (ii) a seller, who is a commercial enterprise which supplies the services on credit and avails the factoring arrangements, and (iii) a factor, which is a financial ...
