Download Accounts Receivable Financing Agreement and more Assignments Business Finance in PDF only on Docsity! Business Notes – Business Notes on Accounts Receivable Financing Agreement. Subject (Business) This is a detailed summary note on financial agreements and the contracts involved. The notes highlight the components and requirement of business contracts and deconstructs the contracts that serves as an actual collateral usually provided in multi-party agreements. These notes will help students understand business contract requirements and provide necessary legal protections that you need in any operation. Not only will this help them minimize business related risk, but they will understand how to protect their businesses by knowing the rights and obligations under each agreement. In addition, these notes will help students improve their understanding of the cash flow and better manage related financial risks. As a result, learning about accounts receivable financing can be extremely helpful for students who are interested in pursuing a career in business or finance. By understanding how this type of financing works, students will be better prepared to work with clients and make sound financial decisions. Business Notes on Accounts Receivable Financing Agreement. The purpose of business contracts The purpose of the contract is to establish a binding agreement between the two parties involved. If loan collateral is agreed, the loan agreement contract will serve as the security agreement declaration, in which the borrower/security provider undertakes to provide certain loan security and the lender assumes the obligation to return the security if the reason for security no longer applies. The contract serves as an actual collateral usually provided in multi-party agreements. The legal basis for the provision of collateral is however not the loan agreement, but the security agreement. Although the loan agreement was the actual cause of the provision of collateral, it did not establish the obligation to provide certain collateral. General/special Clauses These agreements include ten general clauses included in the contract. In all the ten clauses, the content is appropriate and complete. The first four clauses are the main clauses or general clause. There are no missing clauses that should have been included. However, the contract should detail more about the REPAYMENT OF OBLIGATIONS clause to avoid misunderstandings. The contract has no special clauses in the contract that would warrant extra considerations. Firm Upon reading the constructs of the contract, I would sign the contract. This is because all the elements of the agreement are met. The terms and conditions of the agreement also seem plausible. There are no major changes that would need to be made to the agreement as it includes all aspects and requirements of a legal loan agreement. I therefore recommend signing the contract since it is a full contract which favours both the parties. The type of contract in context is an accounts receivable financing agreement pertaining to the specialty finance division Silicon Valley Bank. The agreement is titled as Accounts Receivable Financing Agreement. This is a legal agreement between parties. Type of contract
