Factoring Agreement Sample With Retainer In Travis

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

Description

The factoring agreement sample with retainer in Travis is designed to facilitate the purchase of accounts receivable by a factoring company (Factor) from a business (Client) needing immediate capital. This agreement establishes the absolute assignment of the Client’s receivables to the Factor, stipulating that the Factor assumes credit risks associated with these accounts, barring certain Client Risk Accounts. Key features include provisions for the approval of credit by the Factor, handling of sales and delivery notifications, and the calculation of purchase prices based on agreed terms. Clear instructions are provided for filling the form, including the necessity for proper identifications of both parties, definitions of terms, and conditions regarding the handling of merchandise. Specific use cases include scenarios where businesses encounter cash flow issues, allowing them to maintain operations while receiving funding against their outstanding invoices. This agreement also outlines the responsibilities of both parties, including the management of disputes, mandatory arbitration clauses, and the transferability of rights, making it pertinent for legal professionals to understand these dynamics in corporate finance. This document is essential for attorneys, partners, and paralegals who assist businesses in securing financing through the sale of receivables.