Factoring Agreement General Format In Michigan

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

Description

The Factoring Agreement general format in Michigan outlines the legal relationship between a Factor and a Client regarding the assignment of accounts receivable. It includes sections detailing the sale and delivery of merchandise, credit approval processes, and the assumption of credit risks. The agreement requires that clients assign their receivables to the Factor, who purchases them without recourse in most circumstances. It specifies the purchase price calculations based on commissions and conditions for payment. Additionally, the form addresses client obligations regarding financial reporting, allowing the Factor access to the Client's financial records, and empowers the Factor with a power of attorney for handling related transactions. This arrangement is particularly useful for businesses seeking immediate cash flow by selling their receivables, making it relevant to attorneys, partners, owners, associates, paralegals, and legal assistants who may assist in the drafting or negotiation of such agreements. The clear structure and filling instructions make it easier for legal professionals to adapt the agreement to their clients' specific needs, facilitating smoother business operations.