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.
Washington Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is a legally binding contract entered into by a dealer and a credit corporation. This agreement outlines the terms and conditions under which the credit corporation agrees to provide wholesale financing to the dealer for the purchase of goods or inventory. In this financing agreement, the credit corporation holds a security interest in the dealer's accounts and general intangibles as collateral for the loan. This means that in the event of default or non-payment by the dealer, the credit corporation has the right to seize and sell the accounts and general intangibles to recover the outstanding amount. The Washington Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles includes several key provisions and clauses to protect the interests of both parties. Some of these provisions may include: 1. Loan Amount and Terms: The agreement specifies the total loan amount being provided to the dealer, along with the interest rate, repayment schedule, and any other financial terms that the parties have agreed upon. 2. Security Interest: This clause outlines the security interest that the credit corporation holds over the dealer's accounts and general intangibles. It provides details on how the collateral will be identified, perfected, and maintained throughout the term of the agreement. 3. Default and Remedies: The agreement will specify the conditions under which a default by the dealer may occur, such as non-payment or breach of other contractual obligations. It will also outline the remedies available to the credit corporation in the event of default, which may include the right to seize and sell the collateral. 4. Representations and Warranties: Both parties may be required to make certain representations and warranties regarding their ability to enter into this agreement, the accuracy of the information provided, and compliance with all applicable laws and regulations. 5. Indemnification and Liability: The agreement may include provisions outlining the parties' responsibilities for any losses, damages, or claims arising out of the financing arrangement. It will also define the extent of each party's liability under various circumstances. It is important to note that there may be different types or variations of Washington Financing Agreements between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles. These variations may depend on factors such as the nature of the business, the specific industry involved, and the preferences of the parties involved in the agreement. It is always advisable to consult with legal professionals familiar with Washington state laws to ensure compliance and customization of the agreement based on specific needs and requirements.Washington Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is a legally binding contract entered into by a dealer and a credit corporation. This agreement outlines the terms and conditions under which the credit corporation agrees to provide wholesale financing to the dealer for the purchase of goods or inventory. In this financing agreement, the credit corporation holds a security interest in the dealer's accounts and general intangibles as collateral for the loan. This means that in the event of default or non-payment by the dealer, the credit corporation has the right to seize and sell the accounts and general intangibles to recover the outstanding amount. The Washington Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles includes several key provisions and clauses to protect the interests of both parties. Some of these provisions may include: 1. Loan Amount and Terms: The agreement specifies the total loan amount being provided to the dealer, along with the interest rate, repayment schedule, and any other financial terms that the parties have agreed upon. 2. Security Interest: This clause outlines the security interest that the credit corporation holds over the dealer's accounts and general intangibles. It provides details on how the collateral will be identified, perfected, and maintained throughout the term of the agreement. 3. Default and Remedies: The agreement will specify the conditions under which a default by the dealer may occur, such as non-payment or breach of other contractual obligations. It will also outline the remedies available to the credit corporation in the event of default, which may include the right to seize and sell the collateral. 4. Representations and Warranties: Both parties may be required to make certain representations and warranties regarding their ability to enter into this agreement, the accuracy of the information provided, and compliance with all applicable laws and regulations. 5. Indemnification and Liability: The agreement may include provisions outlining the parties' responsibilities for any losses, damages, or claims arising out of the financing arrangement. It will also define the extent of each party's liability under various circumstances. It is important to note that there may be different types or variations of Washington Financing Agreements between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles. These variations may depend on factors such as the nature of the business, the specific industry involved, and the preferences of the parties involved in the agreement. It is always advisable to consult with legal professionals familiar with Washington state laws to ensure compliance and customization of the agreement based on specific needs and requirements.
