Collection Factoring Agreements: What Every Attorney Should Know

Review the essential elements of factoring agreements and the legal insights every attorney should know when navigating these financial tools. This new practice note discusses collection factoring, detailing the typical structure and terms of collection factoring agreements, including the mechanics, flow of funds, advance rates, security, and recourse of the factor.

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Related Content

• Factoring Transactions
  See this discussion of factoring, a type of financing transaction where accounts receivable (sometimes referred to as accounts or receivables) are sold by the company that originates the accounts (the originator) to a third party for cash.

• Trade Finance Resource Kit
  Check out this resource kit providing an overview of trade finance transactions, letter of credit documentation used in such transactions, and the types of credit support available.

• Collection Factoring Agreement
  Consider the provisions of this template collection factoring agreement typically used by retail companies to sell accounts receivable to a factor at the time of collection from the account debtor.

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