Illinois General Form of Factoring Agreement - Assignment of Accounts Receivable

• Category: Contracts - Factoring
• State: Multi-State
• Control #: US-0270BG
• Format: Word; Rich Text

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 Illinois General Form of Factoring Agreement — Assignment of Accounts Receivable is a legal contract used in the state of Illinois that establishes the terms and conditions for factoring accounts receivable. Factoring is a financial transaction where a company sells its accounts receivable to a third party, known as a factor, at a discounted rate in order to obtain immediate cash. This comprehensive agreement outlines the rights and responsibilities of both the company and the factor in relation to the assignment of accounts receivable. It covers various aspects such as the scope of the agreement, the specific receivables to be assigned, the purchase price or discount rate, terms of payment, and the duration of the agreement. Here are some relevant keywords associated with the Illinois General Form of Factoring Agreement — Assignment of Accounts Receivable: 1. Factoring: The practice of selling accounts receivable to a factor. 2. Accounts Receivable: Unpaid invoices or money owed to a company by its customers. 3. Assignment: The transfer of rights and ownership of accounts receivable to the factor. 4. Discount Rate: The percentage at which the factor buys the receivables, usually lower than the full amount. 5. Purchase Price: The amount paid by the factor to acquire the assigned accounts receivable. 6. Payments: The terms and conditions related to the repayment of the factored amount. 7. Duration: The period of time during which the factoring agreement remains in effect. 8. Recourse: The ability of the factor to seek repayment from the company if the customers fail to pay. 9. Non-Recourse: The factor assumes the risk of non-payment, and the company is not liable for any customer defaults. 10. Confidentiality: The requirement to keep all information related to the agreement and the assigned receivables confidential. It's important to note that there may be different types or variations of the Illinois General Form of Factoring Agreement — Assignment of Accounts Receivable based on specific preferences or modifications made by the parties involved. These variations can include adjustments to payment terms, recourse or non-recourse options, additional provisions regarding disputes or legal jurisdiction, or any other agreed-upon terms. In conclusion, the Illinois General Form of Factoring Agreement — Assignment of Accounts Receivable is a crucial document for companies engaging in factoring transactions in Illinois, establishing the legal framework and obligations between the company and the factor.

The Illinois General Form of Factoring Agreement — Assignment of Accounts Receivable is a legal contract used in the state of Illinois that establishes the terms and conditions for factoring accounts receivable. Factoring is a financial transaction where a company sells its accounts receivable to a third party, known as a factor, at a discounted rate in order to obtain immediate cash. This comprehensive agreement outlines the rights and responsibilities of both the company and the factor in relation to the assignment of accounts receivable. It covers various aspects such as the scope of the agreement, the specific receivables to be assigned, the purchase price or discount rate, terms of payment, and the duration of the agreement. Here are some relevant keywords associated with the Illinois General Form of Factoring Agreement — Assignment of Accounts Receivable: 1. Factoring: The practice of selling accounts receivable to a factor. 2. Accounts Receivable: Unpaid invoices or money owed to a company by its customers. 3. Assignment: The transfer of rights and ownership of accounts receivable to the factor. 4. Discount Rate: The percentage at which the factor buys the receivables, usually lower than the full amount. 5. Purchase Price: The amount paid by the factor to acquire the assigned accounts receivable. 6. Payments: The terms and conditions related to the repayment of the factored amount. 7. Duration: The period of time during which the factoring agreement remains in effect. 8. Recourse: The ability of the factor to seek repayment from the company if the customers fail to pay. 9. Non-Recourse: The factor assumes the risk of non-payment, and the company is not liable for any customer defaults. 10. Confidentiality: The requirement to keep all information related to the agreement and the assigned receivables confidential. It's important to note that there may be different types or variations of the Illinois General Form of Factoring Agreement — Assignment of Accounts Receivable based on specific preferences or modifications made by the parties involved. These variations can include adjustments to payment terms, recourse or non-recourse options, additional provisions regarding disputes or legal jurisdiction, or any other agreed-upon terms. In conclusion, the Illinois General Form of Factoring Agreement — Assignment of Accounts Receivable is a crucial document for companies engaging in factoring transactions in Illinois, establishing the legal framework and obligations between the company and the factor.