Debt Factoring Agreement Template

Note that in the second quote, there is no language on «with recourse.» Even for the purposes of a factoring contract, «buyer» and «buyer» mean the same thing. The word and specific language of each clause depend on the factoring company`s lawyer. An entity and a factor enter into an agreement in which the postman acquires the receivables of a business (these accounts purchased are called factor accounts) on which factored accounts resign themselves and then pay the company the purchase price of the accounts. In addition, if the postman approves a contract by a creditworthy customer of the business and the customer does not then pay the Factored account solely because of the client`s financial insolvency (i.e. due to insolvency or bankruptcy) and not as a result of litigation or other reason, the postman will always pay the purchase price of the account to the company. It is clear that there are many advantages to obtaining non-recourse debt financing. Credit/recovery risk, which is borne by the factoring company, is the greatest advantage. While you are looking for the best offer, you should refer to this article. Despite the title, instead of providing you with a non-recourse agreement test, we thought we would give you a language that flutters red flags – the language that indicates that an agreement is a remedy. As recourse operations have increased potential liability, it is important that you know how to identify differences. But please don`t lose us, appeal cases are not necessarily bad. Because the factoring company does not take as many risks, the costs are generally lower. But if you`re not willing to take the risk of a remedy deal, you need to know how to identify one.

Note that the factoring company (buyer) may, in the above clause, require you to redeem the invoice (the «account purchased») on request – even if your customer has become insolvent, refuses to pay or pay late. This article is not designed as legal advice. This article is only an informative and hypothetical article with examples of language of appeal compared to a sample of non-recourse agreements. We recommend that before signing an agreement, take this article with a grain of salt, refer to your lawyer, and make sure you understand the language, even after your lawyer has explained it to you. If you read the language of recourse, you will know. As a general rule, an agreement that does not have a language of appeal is not a remedy, so you should look for the language of appeal. The factoring agreement (also known as «buy-to-sale contract») will have something like this: Racey Cohn has been offering deal structuring and other advice and advice to major financial institutions for more than 20 years. It reviewed, developed and negotiated documents relating to multi-million euro credit transactions, including factoring contracts; Credit-based loan agreements Licensing agreements Contracts to buy assets and shares; leniency agreements, cash guarantee contracts and stock guarantee contracts; Corporate, corporate and corporate contracts Public and private seizures; forenunciation of owners and warehouses; Guarantees real estate security.