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 Tennessee Financing Agreement between a Dealer and Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles is a legal document that establishes a financial arrangement between a dealer and a credit corporation in Tennessee for the purpose of wholesale financing. This agreement enables the dealer to access funds for purchasing inventory and conducting business operations. Keywords: Tennessee Financing Agreement, Dealer, Credit Corporation, Wholesale Financing, Security Interest, Accounts, General Intangibles, Legal Document. Typically, there are two types of Tennessee Financing Agreements between a Dealer and a Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles: 1. Retail Financing Agreement: This type of agreement is specifically designed for dealers involved in retail businesses. It allows the dealer to obtain financing to purchase inventory and other assets required for their retail operations. The credit corporation grants the funds, while the dealer offers collateral in the form of accounts and general intangibles to secure the loan. 2. Wholesale Financing Agreement: This type of agreement is tailored for wholesalers who deal with bulk quantities of goods. It enables the dealer to acquire funds from the credit corporation to purchase wholesale inventory. As with the retail agreement, the wholesale financing agreement involves the provision of collateral by the dealer in the form of accounts and general intangibles to secure the loan. The Tennessee Financing Agreement between the Dealer and Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles outlines various essential components, including: 1. Parties Involved: The agreement identifies the dealer and the credit corporation involved in the financing arrangement. Their legal names, addresses, and contact information are specified. 2. Financing Terms: The agreement details the loan amount, interest rate, repayment terms, and any fees or penalties associated with the financing. It may also include provisions for additional advances and interest calculations. 3. Collateral: The agreement describes the accounts and general intangibles that the dealer pledges as security for the financing. This may involve listing specific accounts receivable, contracts, or other intangible assets owned by the dealer. 4. Rights and Obligations: The rights and obligations of both parties are outlined in the agreement. It covers the dealer's responsibility to maintain the collateral and provide accurate financial statements, as well as the credit corporation's rights to inspect and audit the dealer's books and records. 5. Default and Remedies: The agreement includes provisions for default by either party and outlines the remedies available to the non-defaulting party. This may involve the credit corporation's right to repossess and sell the collateral to recover the outstanding amount. 6. Governing Law: The agreement specifies that the laws of the state of Tennessee govern its interpretation, enforceability, and validity. It is important for both the dealer and the credit corporation to review and understand the terms and conditions of the Tennessee Financing Agreement thoroughly before signing it. Seeking legal advice is essential to ensure compliance with all relevant laws and regulations governing such agreements in Tennessee.A Tennessee Financing Agreement between a Dealer and Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles is a legal document that establishes a financial arrangement between a dealer and a credit corporation in Tennessee for the purpose of wholesale financing. This agreement enables the dealer to access funds for purchasing inventory and conducting business operations. Keywords: Tennessee Financing Agreement, Dealer, Credit Corporation, Wholesale Financing, Security Interest, Accounts, General Intangibles, Legal Document. Typically, there are two types of Tennessee Financing Agreements between a Dealer and a Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles: 1. Retail Financing Agreement: This type of agreement is specifically designed for dealers involved in retail businesses. It allows the dealer to obtain financing to purchase inventory and other assets required for their retail operations. The credit corporation grants the funds, while the dealer offers collateral in the form of accounts and general intangibles to secure the loan. 2. Wholesale Financing Agreement: This type of agreement is tailored for wholesalers who deal with bulk quantities of goods. It enables the dealer to acquire funds from the credit corporation to purchase wholesale inventory. As with the retail agreement, the wholesale financing agreement involves the provision of collateral by the dealer in the form of accounts and general intangibles to secure the loan. The Tennessee Financing Agreement between the Dealer and Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles outlines various essential components, including: 1. Parties Involved: The agreement identifies the dealer and the credit corporation involved in the financing arrangement. Their legal names, addresses, and contact information are specified. 2. Financing Terms: The agreement details the loan amount, interest rate, repayment terms, and any fees or penalties associated with the financing. It may also include provisions for additional advances and interest calculations. 3. Collateral: The agreement describes the accounts and general intangibles that the dealer pledges as security for the financing. This may involve listing specific accounts receivable, contracts, or other intangible assets owned by the dealer. 4. Rights and Obligations: The rights and obligations of both parties are outlined in the agreement. It covers the dealer's responsibility to maintain the collateral and provide accurate financial statements, as well as the credit corporation's rights to inspect and audit the dealer's books and records. 5. Default and Remedies: The agreement includes provisions for default by either party and outlines the remedies available to the non-defaulting party. This may involve the credit corporation's right to repossess and sell the collateral to recover the outstanding amount. 6. Governing Law: The agreement specifies that the laws of the state of Tennessee govern its interpretation, enforceability, and validity. It is important for both the dealer and the credit corporation to review and understand the terms and conditions of the Tennessee Financing Agreement thoroughly before signing it. Seeking legal advice is essential to ensure compliance with all relevant laws and regulations governing such agreements in Tennessee.
