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.
Franklin Ohio Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is a legally binding contract that outlines the terms and conditions for financing arrangements between a dealer and a credit corporation in Franklin, Ohio. This agreement is designed to enable dealers to obtain funds to purchase inventory for wholesale purposes while providing the credit corporation with security interests in the accounts and general intangibles of the dealer. The primary purpose of this financing agreement is to establish a mutually beneficial relationship between the dealer and the credit corporation, ensuring that both parties are protected and their interests are secured. By granting a security interest in accounts and general intangibles, the credit corporation safeguards its investment in case of default by the dealer. The terms and conditions of the agreement will vary depending on the specific type of financing involved. Common types of Franklin Ohio Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles include: 1. Floor Plan Financing Agreement: This type of agreement enables the dealer to finance the acquisition of inventory from manufacturers or distributors for display and sale on the dealership floor. The credit corporation provides funds to the dealer based on the inventory's value and retains a security interest in the dealer's accounts and general intangibles. 2. Purchase Money Security Interest (PSI) Agreement: Under this type of agreement, the credit corporation provides financing to the dealer for specific purchases of inventory or assets. The credit corporation takes a security interest in those accounts and general intangibles related to the specific purchases. 3. Line of Credit Agreement: In this type of agreement, the credit corporation provides the dealer with a predetermined credit limit, allowing the dealer to draw funds as needed for wholesale financing purposes. The credit corporation retains a security interest in the dealer's accounts and general intangibles within the authorized credit limit. Regardless of the specific type of financing, this agreement typically covers several vital aspects, such as terms of repayment, interest rates, fees, default and remedies, representations and warranties, and the scope of the security interests. Overall, Franklin Ohio Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is pivotal in facilitating the smooth flow of funds for dealers while ensuring that the credit corporation has adequate protection in case of non-payment or default by the dealer. It serves as a crucial document that outlines the rights, obligations, and recourse available to both parties involved in the wholesale financing arrangement.Franklin Ohio Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is a legally binding contract that outlines the terms and conditions for financing arrangements between a dealer and a credit corporation in Franklin, Ohio. This agreement is designed to enable dealers to obtain funds to purchase inventory for wholesale purposes while providing the credit corporation with security interests in the accounts and general intangibles of the dealer. The primary purpose of this financing agreement is to establish a mutually beneficial relationship between the dealer and the credit corporation, ensuring that both parties are protected and their interests are secured. By granting a security interest in accounts and general intangibles, the credit corporation safeguards its investment in case of default by the dealer. The terms and conditions of the agreement will vary depending on the specific type of financing involved. Common types of Franklin Ohio Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles include: 1. Floor Plan Financing Agreement: This type of agreement enables the dealer to finance the acquisition of inventory from manufacturers or distributors for display and sale on the dealership floor. The credit corporation provides funds to the dealer based on the inventory's value and retains a security interest in the dealer's accounts and general intangibles. 2. Purchase Money Security Interest (PSI) Agreement: Under this type of agreement, the credit corporation provides financing to the dealer for specific purchases of inventory or assets. The credit corporation takes a security interest in those accounts and general intangibles related to the specific purchases. 3. Line of Credit Agreement: In this type of agreement, the credit corporation provides the dealer with a predetermined credit limit, allowing the dealer to draw funds as needed for wholesale financing purposes. The credit corporation retains a security interest in the dealer's accounts and general intangibles within the authorized credit limit. Regardless of the specific type of financing, this agreement typically covers several vital aspects, such as terms of repayment, interest rates, fees, default and remedies, representations and warranties, and the scope of the security interests. Overall, Franklin Ohio Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security interest in Accounts and General Intangibles is pivotal in facilitating the smooth flow of funds for dealers while ensuring that the credit corporation has adequate protection in case of non-payment or default by the dealer. It serves as a crucial document that outlines the rights, obligations, and recourse available to both parties involved in the wholesale financing arrangement.
