Phoenix Arizona General Form of Factoring Agreement - Assignment of Accounts Receivable

• Category: Contracts - Factoring
• State: Multi-State
• City: Phoenix
• 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. Phoenix Arizona General Form of Factoring Agreement — Assignment of Accounts Receivable is a legal document commonly used by businesses in Phoenix, Arizona to secure financing by selling their accounts receivable to a third-party financial institution known as a factor. This agreement provides a detailed framework for the transaction and outlines the rights and obligations of both parties involved. The General Form of Factoring Agreement includes several key sections to address various aspects of the assignment of accounts receivable. It typically begins with an introductory clause, stating the intent of the parties to enter into the agreement and defining the terms used throughout the document. The agreement may also contain a section outlining the definitions of important terms, ensuring clear understanding and interpretation by all parties involved. Another important section of the Phoenix Arizona General Form of Factoring Agreement is the Accounts Receivable Assignment section. This section explains the process of assigning the accounts receivable to the factor and the rights transferred to the factor upon assignment. It may outline the specific requirements for the accounts receivable to be eligible for assignment, such as being valid, undisputed, and without any prior encumbrances. The agreement may also include provisions related to the purchase price and funding availability. These sections establish the formula or method used to calculate the purchase price of the accounts receivable and specify the funding availability to ensure a smooth cash flow for the business. Additionally, the document may outline any fees or expenses associated with the agreement, such as factoring fees, administrative charges, or late payment penalties. The rights and obligations of both parties are typically detailed in a section of the Phoenix Arizona General Form of Factoring Agreement. This section may cover the factor's right to demand payment from account debtors, the obligation of the business to notify the factor of any changes in the accounts receivable, and the factor's duty to remit proceeds to the business after deduction of fees and expenses. In terms of different types of Phoenix Arizona General Form of Factoring Agreements — Assignment of Accounts Receivable, businesses may enter into recourse or non-recourse factoring agreements. Recourse factoring allows the factor to seek recourse from the business if the account debtor fails to make payment. In contrast, non-recourse factoring relieves the business from liability in case of non-payment by an account debtor, with the factor bearing the risk. Finally, it is important to note that the Phoenix Arizona General Form of Factoring Agreement — Assignment of Accounts Receivable may be subject to specific state laws and regulations. It is advisable for businesses to seek legal counsel or consult relevant statutes to ensure compliance and protection of their interests.

Phoenix Arizona General Form of Factoring Agreement — Assignment of Accounts Receivable is a legal document commonly used by businesses in Phoenix, Arizona to secure financing by selling their accounts receivable to a third-party financial institution known as a factor. This agreement provides a detailed framework for the transaction and outlines the rights and obligations of both parties involved. The General Form of Factoring Agreement includes several key sections to address various aspects of the assignment of accounts receivable. It typically begins with an introductory clause, stating the intent of the parties to enter into the agreement and defining the terms used throughout the document. The agreement may also contain a section outlining the definitions of important terms, ensuring clear understanding and interpretation by all parties involved. Another important section of the Phoenix Arizona General Form of Factoring Agreement is the Accounts Receivable Assignment section. This section explains the process of assigning the accounts receivable to the factor and the rights transferred to the factor upon assignment. It may outline the specific requirements for the accounts receivable to be eligible for assignment, such as being valid, undisputed, and without any prior encumbrances. The agreement may also include provisions related to the purchase price and funding availability. These sections establish the formula or method used to calculate the purchase price of the accounts receivable and specify the funding availability to ensure a smooth cash flow for the business. Additionally, the document may outline any fees or expenses associated with the agreement, such as factoring fees, administrative charges, or late payment penalties. The rights and obligations of both parties are typically detailed in a section of the Phoenix Arizona General Form of Factoring Agreement. This section may cover the factor's right to demand payment from account debtors, the obligation of the business to notify the factor of any changes in the accounts receivable, and the factor's duty to remit proceeds to the business after deduction of fees and expenses. In terms of different types of Phoenix Arizona General Form of Factoring Agreements — Assignment of Accounts Receivable, businesses may enter into recourse or non-recourse factoring agreements. Recourse factoring allows the factor to seek recourse from the business if the account debtor fails to make payment. In contrast, non-recourse factoring relieves the business from liability in case of non-payment by an account debtor, with the factor bearing the risk. Finally, it is important to note that the Phoenix Arizona General Form of Factoring Agreement — Assignment of Accounts Receivable may be subject to specific state laws and regulations. It is advisable for businesses to seek legal counsel or consult relevant statutes to ensure compliance and protection of their interests.