This form is a type of asset-financing arrangement in which a company uses its receivables (money owed by customers) as collateral in a financing agreement. The company receives an amount that is equal to a reduced value of the receivables pledged. The age of the receivables have a large effect on the amount a company will receive. The older the receivables, the less the company can expect.
This type of financing helps companies free up capital that is stuck in accounts receivables. Accounts receivable financing transfers the default risk associated with the accounts receivables to the financing company. This transfer of risk can help the company using the financing to shift focus from trying to collect receivables to current business activities.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A New Mexico Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is a legal contract outlining the terms and conditions of a financial arrangement between a dealer and a credit corporation. This agreement allows dealers to obtain wholesale financing for their business operations, with the credit corporation providing funds in exchange for a security interest in the dealer's accounts and general intangibles. The main purpose of this financing agreement is to assist dealers in procuring the necessary capital to purchase inventory, expand their business operations, or maintain their current operations efficiently. Key elements included in this financing agreement typically consist of: 1. Parties involved: The agreement will clearly identify the dealer and the credit corporation, outlining their legal names and contact information. 2. Financing terms: The agreement will outline the amount of financing being provided by the credit corporation to the dealer. This may be subject to a maximum limit or can be reviewed periodically. 3. Disbursement and repayment: It will specify the disbursement method, whether as a lump sum or in multiple installments. The repayment terms, including interest rates, repayment schedule, and any penalties for late payments, will also be established. 4. Security interest: The agreement will highlight that the credit corporation will have a security interest in the dealer's accounts and general intangibles. This means that if the dealer defaults on their repayments, the credit corporation has the right to seize and sell the accounts and general intangibles to recover the outstanding debt. 5. Representations and warranties: Both parties will provide representations and warranties, ensuring that they have the authority to enter into this agreement and that all information provided is accurate. 6. Termination: The agreement will specify the circumstances under which the agreement can be terminated, whether by one party or both, and the notice period required for termination. 7. Governing law and jurisdiction: It will include a section specifying the governing law, typically New Mexico state law, under which the agreement will be interpreted. It will also indicate the jurisdiction where any disputes arising from the agreement will be resolved. Types of New Mexico Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles may include variations based on the specific nature of the business and the financing requirements involved. Some common types include: 1. New Mexico Inventory Financing Agreement: This agreement focuses primarily on securing the financing against the inventory owned by the dealer. 2. New Mexico Floor Plan Financing Agreement: This agreement is a specific type of inventory financing that is often used by auto dealerships. It allows the dealer to finance their vehicle inventory, ensuring the credit corporation's security interest in the vehicles. 3. New Mexico Equipment Financing Agreement: This type of agreement is tailored towards providing financing for dealers' equipment purchases, with the equipment itself serving as collateral. In conclusion, the New Mexico Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is an essential legal contract that protects the interests of both parties involved in the financing arrangement. It helps dealers secure the necessary funds to support their business operations while providing the credit corporation with a means to recover the outstanding debt in case of default.A New Mexico Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is a legal contract outlining the terms and conditions of a financial arrangement between a dealer and a credit corporation. This agreement allows dealers to obtain wholesale financing for their business operations, with the credit corporation providing funds in exchange for a security interest in the dealer's accounts and general intangibles. The main purpose of this financing agreement is to assist dealers in procuring the necessary capital to purchase inventory, expand their business operations, or maintain their current operations efficiently. Key elements included in this financing agreement typically consist of: 1. Parties involved: The agreement will clearly identify the dealer and the credit corporation, outlining their legal names and contact information. 2. Financing terms: The agreement will outline the amount of financing being provided by the credit corporation to the dealer. This may be subject to a maximum limit or can be reviewed periodically. 3. Disbursement and repayment: It will specify the disbursement method, whether as a lump sum or in multiple installments. The repayment terms, including interest rates, repayment schedule, and any penalties for late payments, will also be established. 4. Security interest: The agreement will highlight that the credit corporation will have a security interest in the dealer's accounts and general intangibles. This means that if the dealer defaults on their repayments, the credit corporation has the right to seize and sell the accounts and general intangibles to recover the outstanding debt. 5. Representations and warranties: Both parties will provide representations and warranties, ensuring that they have the authority to enter into this agreement and that all information provided is accurate. 6. Termination: The agreement will specify the circumstances under which the agreement can be terminated, whether by one party or both, and the notice period required for termination. 7. Governing law and jurisdiction: It will include a section specifying the governing law, typically New Mexico state law, under which the agreement will be interpreted. It will also indicate the jurisdiction where any disputes arising from the agreement will be resolved. Types of New Mexico Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles may include variations based on the specific nature of the business and the financing requirements involved. Some common types include: 1. New Mexico Inventory Financing Agreement: This agreement focuses primarily on securing the financing against the inventory owned by the dealer. 2. New Mexico Floor Plan Financing Agreement: This agreement is a specific type of inventory financing that is often used by auto dealerships. It allows the dealer to finance their vehicle inventory, ensuring the credit corporation's security interest in the vehicles. 3. New Mexico Equipment Financing Agreement: This type of agreement is tailored towards providing financing for dealers' equipment purchases, with the equipment itself serving as collateral. In conclusion, the New Mexico Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is an essential legal contract that protects the interests of both parties involved in the financing arrangement. It helps dealers secure the necessary funds to support their business operations while providing the credit corporation with a means to recover the outstanding debt in case of default.
