Factoring Agreement General Formula In Minnesota

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

Description

The Factoring Agreement general formula in Minnesota is a legal document allowing a factoring company (Factor) to purchase a seller's (Client) accounts receivable, providing them with immediate access to funds. The Client sells their receivables, which must be bona fide obligations and assigned to the Factor without recourse. The Agreement sets forth conditions for sales, including the need for Factor's credit approval and stipulates that all invoices to customers should indicate the assignment to the Factor. Additionally, it outlines the Factor's right to collect on accounts and impose limits based on customer credit evaluations. The factor assumes risks associated with collections, excluding specific client-risk accounts, and details how purchase prices and commissions are calculated. This form can significantly benefit attorneys, partners, owners, associates, paralegals, and legal assistants by providing a structured framework for managing accounts receivable, improving cash flow, and understanding liability and credit risk. Users must fill in specific details such as names, addresses, and percentages while ensuring compliance with Minnesota's legal standards.