Factoring Agreement Meaning With Tamil With Example In San Antonio
Category:
State:
Multi-State
City:
San Antonio
Control #:
US-00037DR
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Word;
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Description
A factoring agreement is a financial contract where a business (Client) sells its accounts receivable to a third party (Factor) at a discount in order to obtain immediate funds. In Tamil, 'factoring agreement' can be translated as 'கூட்டுத்தொடர் ஒப்பந்தம்'. For example, in San Antonio, a local retailer may use this agreement to finance its operations by selling receivables to a factoring company. Key features include the assignment of receivables, credit approval processes, and the Factor's assumptions of credit risks. The document outlines how funds are transferred, the obligations of both parties, and terms for dispute resolution or termination. Users must fill in details such as company names and dates. It's vital for the target audience, including attorneys, partners, and legal assistants, as it provides a clear structure and legal guidelines for managing financial transactions, ensuring compliance, and protecting interests during factoring transactions.
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FAQ
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 ...
The factoring company assesses the creditworthiness of the customers and the overall financial stability of the business. Typically, the factoring rates range from 1% to 5% of the invoice value, but they can be higher or lower depending on the specific circumstances.
