Factoring Agreement For In Washington

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

Description

The Factoring Agreement in Washington is a formal document established between a factoring company (Factor) and a seller (Client) seeking to convert future accounts receivable into immediate cash by assigning them to the Factor. This agreement outlines the terms under which the Factor purchases accounts receivable, the responsibilities of both parties regarding invoices and credit approvals, and the handling of client risk accounts. It specifies that sales and deliveries of merchandise must be done in the Factor's name and provides guidelines for addressing customer payments and disputes. Key features include the assumption of credit risks by the Factor, the requirement for regular financial reporting by the Client, and conditions under which the agreement may be terminated or modified. This form is particularly useful for attorneys, partners, business owners, associates, paralegals, and legal assistants involved in commercial transactions or financing as it helps streamline cash flow management, reduces credit risk, and enhances financial transparency between businesses. Clear instructions provided within the form make it accessible for individuals with minimal legal experience, ensuring it addresses the essential aspects of factoring agreements effectively.