Harris Texas Modelo General de Contrato de Factoring - Cesión de Cuentas por Cobrar - General Form of Factoring Agreement - Assignment of Accounts Receivable

• Category: Contratos - Factoring
• State: Multi-State
• County: Harris
• Control #: US-0270BG
• Format: Word

Description

This form is a factoring agreement for the assignment of accounts receivable. Factoring is a financial transaction in which a firm sells its accounts receivable invoices to a third party called a factoring firm at a discount, so that it receives immediate money to continue its business. The factoring firm pays a percentage of the invoices immediately. Firms often factor receivables to improve their cash flow. The Harris Texas General Form of Factoring Agreement — Assignment of Accounts Receivable is a legal document that outlines the terms and conditions for the factoring of accounts receivable. Factoring is a financial arrangement in which a company (the "factor") purchases the accounts receivable from another company (the "client") at a discount, providing immediate cash flow. In this agreement, the Harris Texas General Form serves as a standard template that can be customized to fit the specific needs of various businesses operating in Harris County, Texas. It ensures that both parties involved in the factoring agreement have a clear understanding of their rights, obligations, and responsibilities. The agreement typically includes several key components: 1. Parties: The agreement identifies the factor and the client, highlighting their legal names, addresses, and contact information. It also specifies any affiliate companies involved in the transaction. 2. Definitions: This section defines essential terms used throughout the agreement, ensuring clarity and understanding between the parties. Examples may include terms like "accounts receivable," "invoice," "advance rate," or "recourse." 3. Assignment of Accounts Receivable: The agreement clearly states that the client assigns all rights, title, and interest in their accounts receivable to the factor. This means the factor gains ownership over the outstanding invoices and assumes the responsibility of collecting payment from the client's customers. 4. Purchase Price and Factoring Fee: The agreement outlines the calculation of the purchase price, detailing how the factor determines the amount they will pay the client for the accounts receivable. It also specifies the factoring fee, which is the percentage deducted from the face value of the invoices by the factor as compensation for their services. 5. Representations and Warranties: This section includes statements made by both parties, confirming the accuracy of the provided information and their compliance with applicable laws and regulations. 6. Risk and Recourse: The agreement may mention whether the factoring arrangement is with or without recourse. If it is with recourse, the client stays liable for any uncollectible invoices. Without recourse means the factor assumes the entire credit risk for the invoices. 7. Termination: The agreement identifies the conditions upon which either party can terminate the factoring arrangement, including default events, breach of contract, or a specified termination notice period. Different types or variations of the Harris Texas General Form of Factoring Agreement — Assignment of Accounts Receivable may exist based on industry-specific requirements, customizations requested by either party, or particular terms negotiated between the factor and the client. These variations may include provisions related to the minimum or maximum deal size, specific industries served, or additional requirements for the submission of invoices and supporting documentation. It is important for both parties to seek legal counsel and review the agreement thoroughly before signing to ensure that all terms are understood, agreed upon, and comply with applicable laws in Harris County, Texas.

The Harris Texas General Form of Factoring Agreement — Assignment of Accounts Receivable is a legal document that outlines the terms and conditions for the factoring of accounts receivable. Factoring is a financial arrangement in which a company (the "factor") purchases the accounts receivable from another company (the "client") at a discount, providing immediate cash flow. In this agreement, the Harris Texas General Form serves as a standard template that can be customized to fit the specific needs of various businesses operating in Harris County, Texas. It ensures that both parties involved in the factoring agreement have a clear understanding of their rights, obligations, and responsibilities. The agreement typically includes several key components: 1. Parties: The agreement identifies the factor and the client, highlighting their legal names, addresses, and contact information. It also specifies any affiliate companies involved in the transaction. 2. Definitions: This section defines essential terms used throughout the agreement, ensuring clarity and understanding between the parties. Examples may include terms like "accounts receivable," "invoice," "advance rate," or "recourse." 3. Assignment of Accounts Receivable: The agreement clearly states that the client assigns all rights, title, and interest in their accounts receivable to the factor. This means the factor gains ownership over the outstanding invoices and assumes the responsibility of collecting payment from the client's customers. 4. Purchase Price and Factoring Fee: The agreement outlines the calculation of the purchase price, detailing how the factor determines the amount they will pay the client for the accounts receivable. It also specifies the factoring fee, which is the percentage deducted from the face value of the invoices by the factor as compensation for their services. 5. Representations and Warranties: This section includes statements made by both parties, confirming the accuracy of the provided information and their compliance with applicable laws and regulations. 6. Risk and Recourse: The agreement may mention whether the factoring arrangement is with or without recourse. If it is with recourse, the client stays liable for any uncollectible invoices. Without recourse means the factor assumes the entire credit risk for the invoices. 7. Termination: The agreement identifies the conditions upon which either party can terminate the factoring arrangement, including default events, breach of contract, or a specified termination notice period. Different types or variations of the Harris Texas General Form of Factoring Agreement — Assignment of Accounts Receivable may exist based on industry-specific requirements, customizations requested by either party, or particular terms negotiated between the factor and the client. These variations may include provisions related to the minimum or maximum deal size, specific industries served, or additional requirements for the submission of invoices and supporting documentation. It is important for both parties to seek legal counsel and review the agreement thoroughly before signing to ensure that all terms are understood, agreed upon, and comply with applicable laws in Harris County, Texas.

Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.