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.
Title: Maricopa Arizona Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles Introduction: The Maricopa Arizona Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles is a legal contract that outlines the terms and conditions of a financial arrangement between a dealer and a credit corporation. This agreement allows dealers to obtain wholesale financing from the credit corporation while providing the corporation with a security interest in the accounts and general intangibles of the dealership. Keywords: Maricopa Arizona Financing Agreement, Dealer, Credit Corporation, Wholesale Financing, Security Interest, Accounts, General Intangibles. Types of Maricopa Arizona Financing Agreements: 1. Basic Financing Agreement: In this type of agreement, the dealer and the credit corporation establish a wholesale financing arrangement that enables the dealer to access funds for purchasing inventory and managing day-to-day operations. The credit corporation holds a security interest in the accounts and general intangibles of the dealership. Keywords: Basic Financing Agreement, Wholesale Financing, Inventory, Day-to-Day Operations. 2. Revolving Line of Credit Agreement: Under this agreement, the dealer and credit corporation establish a revolving line of credit. The dealer can access funds up to a predetermined limit, repay them, and reuse the credit as needed. The credit corporation retains a security interest in the dealership's accounts and general intangibles. Keywords: Revolving Line of Credit Agreement, Funds, Predetermined Limit, Repayment, Reuse. 3. Floor plan Financing Agreement: Specific to the automotive industry, this agreement is employed by dealerships to finance their inventory. The credit corporation provides funds to purchase vehicles, which serve as collateral. As the dealer sells the vehicles, the funds are repaid to the credit corporation. Again, a security interest is held by the credit corporation in the dealership's accounts and general intangibles. Keywords: Floor plan Financing Agreement, Automotive Industry, Collateral, Funds, Repayment. Conclusion: The Maricopa Arizona Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles is a crucial contract that allows dealerships to obtain necessary financing while ensuring the credit corporation has a vested interest in the operations and assets of the dealership. By utilizing various types of financing agreements, dealers and credit corporations can customize their arrangements to meet their specific needs and objectives. Keywords: Maricopa Arizona Financing Agreement, Dealer, Credit Corporation, Wholesale Financing, Security Interest, Accounts, General Intangibles.Title: Maricopa Arizona Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles Introduction: The Maricopa Arizona Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles is a legal contract that outlines the terms and conditions of a financial arrangement between a dealer and a credit corporation. This agreement allows dealers to obtain wholesale financing from the credit corporation while providing the corporation with a security interest in the accounts and general intangibles of the dealership. Keywords: Maricopa Arizona Financing Agreement, Dealer, Credit Corporation, Wholesale Financing, Security Interest, Accounts, General Intangibles. Types of Maricopa Arizona Financing Agreements: 1. Basic Financing Agreement: In this type of agreement, the dealer and the credit corporation establish a wholesale financing arrangement that enables the dealer to access funds for purchasing inventory and managing day-to-day operations. The credit corporation holds a security interest in the accounts and general intangibles of the dealership. Keywords: Basic Financing Agreement, Wholesale Financing, Inventory, Day-to-Day Operations. 2. Revolving Line of Credit Agreement: Under this agreement, the dealer and credit corporation establish a revolving line of credit. The dealer can access funds up to a predetermined limit, repay them, and reuse the credit as needed. The credit corporation retains a security interest in the dealership's accounts and general intangibles. Keywords: Revolving Line of Credit Agreement, Funds, Predetermined Limit, Repayment, Reuse. 3. Floor plan Financing Agreement: Specific to the automotive industry, this agreement is employed by dealerships to finance their inventory. The credit corporation provides funds to purchase vehicles, which serve as collateral. As the dealer sells the vehicles, the funds are repaid to the credit corporation. Again, a security interest is held by the credit corporation in the dealership's accounts and general intangibles. Keywords: Floor plan Financing Agreement, Automotive Industry, Collateral, Funds, Repayment. Conclusion: The Maricopa Arizona Financing Agreement between Dealer and Credit Corporation for Wholesale Financing with Security Interest in Accounts and General Intangibles is a crucial contract that allows dealerships to obtain necessary financing while ensuring the credit corporation has a vested interest in the operations and assets of the dealership. By utilizing various types of financing agreements, dealers and credit corporations can customize their arrangements to meet their specific needs and objectives. Keywords: Maricopa Arizona Financing Agreement, Dealer, Credit Corporation, Wholesale Financing, Security Interest, Accounts, General Intangibles.
