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Factoring And Security Agreement
"Need a Factoring and Security Agreement for my manufacturing company to factor £2 million in receivables, with recourse to the factor and a 75% advance rate, to be completed by March 2025."
1. Parties: Identification and details of the factor and the client
2. Background: Context of the agreement and commercial purpose
3. Definitions and Interpretation: Key terms and their meanings used throughout the agreement
4. Sale and Purchase of Receivables: Core provisions regarding the transfer of receivables
5. Purchase Price and Payment Terms: Pricing mechanism and payment arrangements
6. Security Provisions: Details of security granted and enforcement rights
7. Representations and Warranties: Standard assurances from both parties
8. Covenants: Ongoing obligations of the parties
9. Events of Default: Circumstances constituting default and consequences
10. Termination: Provisions for ending the agreement
1. Cross-Border Provisions: Additional provisions for handling international receivables and cross-border factoring arrangements
2. Data Protection: Specific provisions for handling personal data in compliance with UK GDPR and Data Protection Act 2018
3. Insurance: Provisions relating to credit insurance arrangements and requirements
4. Collection Procedures: Detailed provisions regarding the collection process when factor handles collections directly
1. Form of Notice to Debtors: Template notification to debtors about the factoring arrangement
2. Eligible Receivables Criteria: Detailed criteria for acceptable receivables
3. Calculation of Purchase Price: Detailed pricing formula and mechanisms
4. Operating Procedures: Day-to-day operational procedures and requirements
5. Form of Debtor Schedule: Template for listing and describing receivables
Authors
Advance Payment
Approved Debtor
Assignment
Available Funds
Book Debts
Charge
Collection Account
Commencement Date
Concentration Limit
Debtor
Debtor Schedule
Dilution
Discount Charge
Eligible Receivable
Event of Default
Factor's Commission
Factoring Facility
Funding Limit
Indebtedness
Initial Payment
Invoice
Notification
Notified Value
Purchase Price
Receivables
Recourse
Related Rights
Reserve
Secured Assets
Secured Obligations
Security Interest
Security Period
Service Charge
Trust Account
Unapproved Debtor
Undisclosed Factoring
Verification
With Recourse
Without Recourse
Calculation of Purchase Price
Collection Rights
Commencement and Duration
Conditions Precedent
Confidentiality
Creation of Security
Data Protection
Debtor Notification
Dispute Resolution
Events of Default
Factor's Rights and Obligations
Further Assurance
Governing Law and Jurisdiction
Indemnification
Information Covenants
Interest and Fees
Negative Pledge
Notice Requirements
Operational Procedures
Payment Mechanics
Perfection of Security
Power of Attorney
Recourse Rights
Representations and Warranties
Reserve Account
Restrictions on Disposals
Rights of Set-off
Security Enforcement
Seller's Covenants
Taxes
Termination
Trust Arrangements
Variations and Amendments
Warranties about Receivables
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