Factoring Agreement Filed With State In Sacramento

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

Description

The Factoring Agreement filed with the state in Sacramento is a legal document that outlines the terms under which a Factor purchases a Client's accounts receivable. This agreement enables Clients, typically businesses that sell on credit, to obtain immediate funds by selling their receivables to the Factor. Key features of the form include the assignment of accounts receivable, the process for sales and delivery of merchandise, credit approval procedures, and assumptions of credit risks. Users should carefully complete the form with accurate company information, define the percentage for Factor's commission, and establish the terms for payment. It is designed for a diverse audience, including attorneys, partners, owners, associates, paralegals, and legal assistants, who can utilize it to secure funding while minimizing risks associated with credit sales. The agreement also outlines the responsibilities of both parties and includes provisions for breach of warranty, termination, and modifications. This form is particularly useful for businesses seeking liquidity while managing their credit risk effectively.