Houston Texas General Form of Factoring Agreement - Assignment of Accounts Receivable

• Category: Contracts - Factoring
• State: Multi-State
• City: Houston
• 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. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable is a legal document that outlines the terms and conditions between a business, known as the "Seller," and a financial institution, known as the "Factor." This agreement allows the Seller to assign their accounts receivable to the Factor in exchange for immediate cash flow. The Houston Texas General Form of Factoring Agreement ensures a smooth and efficient relationship between the parties involved. It includes key provisions such as: 1. Parties: Clearly identifies the legal names and addresses of both the Seller and the Factor. 2. Definitions: Provides a comprehensive list of defined terms used throughout the agreement, ensuring clarity and eliminating ambiguity. 3. Assignment of Accounts Receivable: Specifies that the Seller transfers all its accounts receivable to the Factor, including any associated rights, title, and interest. 4. Purchase Price: Outlines how the Factor will determine the purchase price for the assigned accounts receivable, usually based on a percentage of the face value. 5. Obligations of the Seller: Outlines the Seller's responsibilities, including accurately invoicing customers, collecting payments, and maintaining accurate records. 6. Obligations of the Factor: Specifies the Factor's responsibilities, such as providing regular reports, handling collections, and disbursing funds to the Seller. 7. Reserves: States whether the Factor will establish a reserve account to cover potential disputes, returns, or allowances. 8. Fees and Charges: Describes any fees or charges payable to the Factor by the Seller, such as a factoring fee, interest, or late payment penalties. 9. Confidentiality: Ensures that both parties maintain the confidentiality of all non-public information obtained during the course of the agreement. 10. Termination: Specifies the conditions under which either party can terminate the agreement, including default, breach, or completion of the factoring arrangement. Different variations of the Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable may exist, catering to specific industries or tailored to meet the unique needs of businesses operating within Houston. These variations may include industry-specific terms, additional provisions, or modifications to suit particular business models. Examples of such variations could include: 1. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable for Manufacturing Companies 2. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable for Construction Firms 3. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable for Healthcare Providers 4. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable for Transportation Companies 5. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable for Service-based Businesses These variations ensure that the agreement best aligns with the specific nature and requirements of the industry or business involved, providing clarity and addressing industry-specific concerns.

Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable is a legal document that outlines the terms and conditions between a business, known as the "Seller," and a financial institution, known as the "Factor." This agreement allows the Seller to assign their accounts receivable to the Factor in exchange for immediate cash flow. The Houston Texas General Form of Factoring Agreement ensures a smooth and efficient relationship between the parties involved. It includes key provisions such as: 1. Parties: Clearly identifies the legal names and addresses of both the Seller and the Factor. 2. Definitions: Provides a comprehensive list of defined terms used throughout the agreement, ensuring clarity and eliminating ambiguity. 3. Assignment of Accounts Receivable: Specifies that the Seller transfers all its accounts receivable to the Factor, including any associated rights, title, and interest. 4. Purchase Price: Outlines how the Factor will determine the purchase price for the assigned accounts receivable, usually based on a percentage of the face value. 5. Obligations of the Seller: Outlines the Seller's responsibilities, including accurately invoicing customers, collecting payments, and maintaining accurate records. 6. Obligations of the Factor: Specifies the Factor's responsibilities, such as providing regular reports, handling collections, and disbursing funds to the Seller. 7. Reserves: States whether the Factor will establish a reserve account to cover potential disputes, returns, or allowances. 8. Fees and Charges: Describes any fees or charges payable to the Factor by the Seller, such as a factoring fee, interest, or late payment penalties. 9. Confidentiality: Ensures that both parties maintain the confidentiality of all non-public information obtained during the course of the agreement. 10. Termination: Specifies the conditions under which either party can terminate the agreement, including default, breach, or completion of the factoring arrangement. Different variations of the Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable may exist, catering to specific industries or tailored to meet the unique needs of businesses operating within Houston. These variations may include industry-specific terms, additional provisions, or modifications to suit particular business models. Examples of such variations could include: 1. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable for Manufacturing Companies 2. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable for Construction Firms 3. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable for Healthcare Providers 4. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable for Transportation Companies 5. Houston Texas General Form of Factoring Agreement — Assignment of Accounts Receivable for Service-based Businesses These variations ensure that the agreement best aligns with the specific nature and requirements of the industry or business involved, providing clarity and addressing industry-specific concerns.