Factoring Agreement Sample For Business In Travis
Category:
State:
Multi-State
County:
Travis
Control #:
US-00037DR
Format:
Word;
Rich Text
Instant download
Description
The Factoring Agreement Sample for Business in Travis is a legally binding document designed to facilitate the sale of accounts receivable from a client (the Seller) to a factor (the purchaser). Key features of this agreement include the assignment of all accounts receivable, which the factor agrees to purchase without recourse, and the establishment of credit approval procedures that the client must adhere to. The form outlines the procedures for sales and delivery of merchandise, including requirements for invoicing and notifying customers about the change in account ownership. Utility for the target audience, including attorneys, partners, owners, associates, paralegals, and legal assistants, lies in the structured provisions that facilitate funding operations through the sale of receivables. Further, the document details obligations regarding credit risks, purchase prices, and includes an attorney-in-fact clause allowing the factor control over receivables. Legal professionals can use this template to protect clients’ interests while ensuring compliance with regulatory standards. Additionally, it serves as a framework for addressing disputes through mandatory arbitration and clarifies the governing law. The clear structure aids in efficient completion and modifications, making it user-friendly for individuals with limited legal experience.
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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 ...
What is Process of Factoring? Factoring is a financial transaction in which a business sells its accounts receivable (invoices) to a third party, called a factor, at a discount.
