Wake North Carolina General Form of Factoring Agreement - Assignment of Accounts Receivable

• Category: Contracts - Factoring
• State: Multi-State
• County: Wake
• 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 Wake North Carolina General Form of Factoring Agreement — Assignment of Accounts Receivable is a legally binding document that outlines the terms and conditions for the assignment of accounts receivable from one party (the "assignor") to another party (the "factor"). This agreement is commonly used in Wake County, North Carolina, as a means of obtaining immediate cash flow for businesses. Keywords: Wake North Carolina, factoring agreement, assignment of accounts receivable, legal document, terms and conditions, assignor, factor, cash flow, businesses. There are different types of Wake North Carolina General Form of Factoring Agreement — Assignment of Accounts Receivable, which include: 1. Recourse Factoring Agreement: In this type of agreement, the assignor remains liable for any bad debts or uncollected accounts receivable. If the factor is unable to collect payment from the debtor, the assignor is required to repurchase the assigned accounts receivable. 2. Non-Recourse Factoring Agreement: Under this type of agreement, the factor assumes the risk of non-payment from the debtor. If the assigned accounts receivable prove to be uncollectible, the factor absorbs the loss, and the assignor is not liable. 3. With Notification Factoring Agreement: In this type of agreement, the debtor is notified of the assignment and directed to pay the factor directly. The factor typically verifies the assignment with the debtor to ensure smooth payment collection. 4. Without Notification Factoring Agreement: This type of agreement allows the assignor to continue collecting payment directly from the debtor. However, the assignor is still responsible for remitting the assigned amounts to the factor as per the agreed terms. It is essential for all involved parties to carefully review and understand the Wake North Carolina General Form of Factoring Agreement — Assignment of Accounts Receivable before signing. Seeking legal advice in drafting or entering into such agreements is recommended to ensure compliance with relevant laws and protection of the parties' rights and interests.

The Wake North Carolina General Form of Factoring Agreement — Assignment of Accounts Receivable is a legally binding document that outlines the terms and conditions for the assignment of accounts receivable from one party (the "assignor") to another party (the "factor"). This agreement is commonly used in Wake County, North Carolina, as a means of obtaining immediate cash flow for businesses. Keywords: Wake North Carolina, factoring agreement, assignment of accounts receivable, legal document, terms and conditions, assignor, factor, cash flow, businesses. There are different types of Wake North Carolina General Form of Factoring Agreement — Assignment of Accounts Receivable, which include: 1. Recourse Factoring Agreement: In this type of agreement, the assignor remains liable for any bad debts or uncollected accounts receivable. If the factor is unable to collect payment from the debtor, the assignor is required to repurchase the assigned accounts receivable. 2. Non-Recourse Factoring Agreement: Under this type of agreement, the factor assumes the risk of non-payment from the debtor. If the assigned accounts receivable prove to be uncollectible, the factor absorbs the loss, and the assignor is not liable. 3. With Notification Factoring Agreement: In this type of agreement, the debtor is notified of the assignment and directed to pay the factor directly. The factor typically verifies the assignment with the debtor to ensure smooth payment collection. 4. Without Notification Factoring Agreement: This type of agreement allows the assignor to continue collecting payment directly from the debtor. However, the assignor is still responsible for remitting the assigned amounts to the factor as per the agreed terms. It is essential for all involved parties to carefully review and understand the Wake North Carolina General Form of Factoring Agreement — Assignment of Accounts Receivable before signing. Seeking legal advice in drafting or entering into such agreements is recommended to ensure compliance with relevant laws and protection of the parties' rights and interests.