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.
Cuyahoga Ohio Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is a legal contract designed to outline financial arrangements between a dealer and a credit corporation in Cuyahoga County, Ohio. This agreement primarily focuses on facilitating wholesale financing and includes provisions for securing the credit corporation's investment. Key terms: 1. Cuyahoga County, Ohio: Refers to the specific geographical area where the financing agreement is taking place, namely in Cuyahoga County, Ohio, which is a county located in the state of Ohio, USA. 2. Financing Agreement: The formal contract entered into by the dealer and the credit corporation, outlining the terms and conditions of the wholesale financing arrangement. This includes aspects such as loan duration, interest rates, repayment schedules, and any applicable fees. 3. Dealer: Refers to the entity or individual engaged in the business of selling goods on a wholesale basis. The dealer seeks wholesale financing to support their business activities, such as purchasing inventory, fulfilling orders, and expanding operations. 4. Credit Corporation: The lending institution responsible for providing wholesale financing to the dealer. The credit corporation assesses the dealer's creditworthiness, extends the necessary funds, and establishes security interests to protect their investment. 5. Wholesale Financing: Describes the credit extended by the corporation to the dealer for the purpose of purchasing goods on a wholesale basis. It allows the dealer to maintain a constant supply of inventory, meet customer demand, and grow their business without relying solely on their own capital reserves. 6. Security Interest: The collateral or guarantee provided by the dealer to the credit corporation to secure the loan. In this agreement, the security interest is focused on the dealer's accounts receivable and general intangible assets, aiming to protect the credit corporation's rights in case of default. Additional types of Cuyahoga Ohio Financing Agreements between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles may include: — Secured Promissory Note: A financing agreement that involves the issuance of a promissory note by the dealer, which acts as evidence of the debt owed to the credit corporation. The note includes provisions for securing the loan against the accounts and general intangibles of the dealer. — UCC-1 Financing Statement: A financing agreement that encompasses the filing of the Uniform Commercial Code (UCC) Form-1 by the credit corporation. By filing this document with the appropriate authorities, the credit corporation establishes a public record of their security interest in the dealer's accounts and general intangibles. — Debenture Agreement: A more comprehensive financing agreement that may involve multiple dealers and higher loan amounts. It includes detailed clauses regarding repayment terms, interest calculations, and additional covenants, besides the security interest in accounts and general intangibles. The specific type of financing agreement utilized depends on the specific needs and requirements of the dealer and the credit corporation during the wholesale financing process in Cuyahoga County, Ohio.Cuyahoga Ohio Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is a legal contract designed to outline financial arrangements between a dealer and a credit corporation in Cuyahoga County, Ohio. This agreement primarily focuses on facilitating wholesale financing and includes provisions for securing the credit corporation's investment. Key terms: 1. Cuyahoga County, Ohio: Refers to the specific geographical area where the financing agreement is taking place, namely in Cuyahoga County, Ohio, which is a county located in the state of Ohio, USA. 2. Financing Agreement: The formal contract entered into by the dealer and the credit corporation, outlining the terms and conditions of the wholesale financing arrangement. This includes aspects such as loan duration, interest rates, repayment schedules, and any applicable fees. 3. Dealer: Refers to the entity or individual engaged in the business of selling goods on a wholesale basis. The dealer seeks wholesale financing to support their business activities, such as purchasing inventory, fulfilling orders, and expanding operations. 4. Credit Corporation: The lending institution responsible for providing wholesale financing to the dealer. The credit corporation assesses the dealer's creditworthiness, extends the necessary funds, and establishes security interests to protect their investment. 5. Wholesale Financing: Describes the credit extended by the corporation to the dealer for the purpose of purchasing goods on a wholesale basis. It allows the dealer to maintain a constant supply of inventory, meet customer demand, and grow their business without relying solely on their own capital reserves. 6. Security Interest: The collateral or guarantee provided by the dealer to the credit corporation to secure the loan. In this agreement, the security interest is focused on the dealer's accounts receivable and general intangible assets, aiming to protect the credit corporation's rights in case of default. Additional types of Cuyahoga Ohio Financing Agreements between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles may include: — Secured Promissory Note: A financing agreement that involves the issuance of a promissory note by the dealer, which acts as evidence of the debt owed to the credit corporation. The note includes provisions for securing the loan against the accounts and general intangibles of the dealer. — UCC-1 Financing Statement: A financing agreement that encompasses the filing of the Uniform Commercial Code (UCC) Form-1 by the credit corporation. By filing this document with the appropriate authorities, the credit corporation establishes a public record of their security interest in the dealer's accounts and general intangibles. — Debenture Agreement: A more comprehensive financing agreement that may involve multiple dealers and higher loan amounts. It includes detailed clauses regarding repayment terms, interest calculations, and additional covenants, besides the security interest in accounts and general intangibles. The specific type of financing agreement utilized depends on the specific needs and requirements of the dealer and the credit corporation during the wholesale financing process in Cuyahoga County, Ohio.
