Washington 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 Washington General Form of Factoring Agreement — Assignment of Accounts Receivable is a legal contract used in the state of Washington for businesses engaging in factoring transactions. This agreement outlines the terms and conditions under which a company (known as the "Assignor") assigns its accounts receivable to a financial institution or factor (known as the "Assignee") in exchange for immediate funds. Keywords: Washington, General Form, Factoring Agreement, Assignment of Accounts Receivable, financial institution, factor, immediate funds. There are several variations of the Washington General Form of Factoring Agreement — Assignment of Accounts Receivable, each tailored to suit specific business needs. These variations include: 1. Recourse Factoring Agreement: This type of agreement stipulates that the Assignor remains liable for any unpaid or uncollected invoices in case the debtor fails to make payment to the Assignee. The Assignor is required to repurchase any delinquent invoices. 2. Non-Recourse Factoring Agreement: In this agreement, the Assignee assumes the risk of non-payment by the debtor. If the invoice remains unpaid due to a debtor's insolvency or inability to pay, the Assignee absorbs the loss and the Assignor is not responsible for repurchasing the delinquent invoice. 3. Notification Factoring Agreement: This form of agreement requires the Assignor to notify its customers about the assignment of accounts receivable to the Assignee. The Assignee reserves the right to verify the assignment with the debtor directly. 4. Non-Notification Factoring Agreement: In contrast to the notification agreement, the Assignor does not inform its customers about the assignment. The Assignee handles the collections discreetly and assumes responsibility for informing debtors if necessary. In general, regardless of the specific type of Washington General Form of Factoring Agreement — Assignment of Accounts Receivable, these contracts serve the purpose of facilitating quick access to working capital for businesses by converting their outstanding invoices into immediate cash flow. It allows businesses to sell their accounts receivable at a discounted rate, providing liquidity and improved financial flexibility. Note: It is crucial to consult with legal professionals experienced in Washington state laws when drafting or entering into any form of the Washington General Form of Factoring Agreement — Assignment of Accounts Receivable.

The Washington General Form of Factoring Agreement — Assignment of Accounts Receivable is a legal contract used in the state of Washington for businesses engaging in factoring transactions. This agreement outlines the terms and conditions under which a company (known as the "Assignor") assigns its accounts receivable to a financial institution or factor (known as the "Assignee") in exchange for immediate funds. Keywords: Washington, General Form, Factoring Agreement, Assignment of Accounts Receivable, financial institution, factor, immediate funds. There are several variations of the Washington General Form of Factoring Agreement — Assignment of Accounts Receivable, each tailored to suit specific business needs. These variations include: 1. Recourse Factoring Agreement: This type of agreement stipulates that the Assignor remains liable for any unpaid or uncollected invoices in case the debtor fails to make payment to the Assignee. The Assignor is required to repurchase any delinquent invoices. 2. Non-Recourse Factoring Agreement: In this agreement, the Assignee assumes the risk of non-payment by the debtor. If the invoice remains unpaid due to a debtor's insolvency or inability to pay, the Assignee absorbs the loss and the Assignor is not responsible for repurchasing the delinquent invoice. 3. Notification Factoring Agreement: This form of agreement requires the Assignor to notify its customers about the assignment of accounts receivable to the Assignee. The Assignee reserves the right to verify the assignment with the debtor directly. 4. Non-Notification Factoring Agreement: In contrast to the notification agreement, the Assignor does not inform its customers about the assignment. The Assignee handles the collections discreetly and assumes responsibility for informing debtors if necessary. In general, regardless of the specific type of Washington General Form of Factoring Agreement — Assignment of Accounts Receivable, these contracts serve the purpose of facilitating quick access to working capital for businesses by converting their outstanding invoices into immediate cash flow. It allows businesses to sell their accounts receivable at a discounted rate, providing liquidity and improved financial flexibility. Note: It is crucial to consult with legal professionals experienced in Washington state laws when drafting or entering into any form of the Washington General Form of Factoring Agreement — Assignment of Accounts Receivable.