Factoring Agreement Template For Nonprofit Organizations In Wake
Category:
State:
Multi-State
County:
Wake
Control #:
US-00037DR
Format:
Word;
Rich Text
Instant download
Description
The Factoring Agreement template for nonprofit organizations in Wake provides a structured framework for nonprofits seeking to manage their accounts receivable by obtaining immediate funds and commercial credit. This agreement outlines the responsibilities of both the Factor and the Client, detailing how accounts receivable will be assigned and how payment terms will be established. Key features include provisions for sales and delivery of merchandise, credit approval processes, and warranty of assignment, ensuring that the nonprofit retains control over operations while gaining financial support. The template includes filling instructions, such as specifying terms for commissions and payment schedules, making it adaptable to the unique needs of nonprofits. It also highlights scenarios such as insolvency, customer disputes, and credit risk management. This document is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants as it streamlines the financing process while minimizing legal risks, enabling nonprofits to focus on their mission-driven activities without financial constraints.
Free preview
Form popularity
FAQ
The maximum debt period normally permitted under factoring is 150 days inclusive of a maximum grace period of 60 days.
A factoring agreement involves three key parties: The business selling its outstanding invoices or accounts receivable. The factor, which is the company providing factoring services. The company's client, responsible for making payments directly to the factor for the invoiced amount.
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 ...
