Factoring Purchase Agreement With Monthly Payments In Florida

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

Description

The Factoring Purchase Agreement with Monthly Payments in Florida is a legal document designed for transactions involving the purchase of accounts receivable. This agreement outlines the terms under which a factor (the purchaser) acquires the rights to collect payments owed to a seller (the client) based on credit sales. Key features include the assignment of accounts receivable to the factor, the payment of purchase prices after deducting the factor's commission, and provisions on credit risk, including the factor's right to collect and maintain actions in its name. Users must fill in specific information such as the names of the factor and client, as well as terms related to commission percentages and payment timelines. The agreement serves various legal professionals, including attorneys, partners, and paralegals, by providing a structured framework to facilitate funding for businesses through the sale of receivables. It is particularly useful in situations where businesses seek immediate cash flow and want to mitigate credit risk associated with their customers. The clear stipulations about responsibilities and liabilities offer protection and legal recourse for both parties, helping ensure smooth transactions.