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Forderungskaufvertrag

English translation: Factoring agreement

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Forderungskaufvertrag
English translation:Factoring agreement
Entered by: Marie Lowrie
Options:
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07:40 Jul 4, 2002
German to English translations [PRO]
Law/Patents - Law: Contract(s) / Contract
German term or phrase: Forderungskaufvertrag
Forderungskaufvertrag
Marie Lowrie
United Kingdom
Local time: 04:37
factoring agreement
Explanation:
Nothing against Andy's suggestion, I just think that "factoring agreement" is more common.

Forderungsverkauf = factoring (Woywode, Accounting and Tax Dictionary)

See for example:
"This Agreement provides a cash strapped company with a form of receivables financing under which a party other than the seller of
goods assumes the credit risk.
The company sells, assigns and transfers to the Factor all of its accounts (both its currently outstanding accounts and future
Accounts), with full power to collect and otherwise act as the sole end exclusive owner of the accounts. The Factor may establish
credit lines for sales to the company's customers on the company's normal selling terms.
The Factor purchases the company's accounts and assumes the credit risk on all approved accounts, however, the Factor generally
has full recourse to the company for all non-approved accounts. The Factor pays the company as the purchase price the net
amount of the account calculated by deducting from the gross amount of the account the discount, if any, Factor's factoring commission and all credits (including merchandise returns, allowances, and chargebacks and all other charges provided for under the
Factoring Agreement.
Optional provisions are attached at the end of the document for use in the Agreement if the Factor will be making cash advances to the company."
Selected response from:

Beate Lutzebaeck
New Zealand
Local time: 16:37
Grading comment
Many thanks for your detailed explanation. It has really helped me to understand the background to the contract!
4 KudoZ points were awarded for this answer

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Summary of answers provided
4 +1factoring agreementBeate Lutzebaeck
5receivables purchase agreement
Andy Lemminger


  

Answers


4 mins   confidence: Answerer confidence 5/5
receivables purchase agreement


Explanation:
out of Zahn Finance dictionary

--------------------------------------------------
Note added at 2002-07-04 07:46:05 (GMT)
--------------------------------------------------

Companies can sell their receivables to get their money sooner.

Andy Lemminger
Canada
Local time: 21:37
Works in field
Native speaker of: German
PRO pts in category: 22
Login to enter a peer comment (or grade)

12 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
factoring agreement


Explanation:
Nothing against Andy's suggestion, I just think that "factoring agreement" is more common.

Forderungsverkauf = factoring (Woywode, Accounting and Tax Dictionary)

See for example:
"This Agreement provides a cash strapped company with a form of receivables financing under which a party other than the seller of
goods assumes the credit risk.
The company sells, assigns and transfers to the Factor all of its accounts (both its currently outstanding accounts and future
Accounts), with full power to collect and otherwise act as the sole end exclusive owner of the accounts. The Factor may establish
credit lines for sales to the company's customers on the company's normal selling terms.
The Factor purchases the company's accounts and assumes the credit risk on all approved accounts, however, the Factor generally
has full recourse to the company for all non-approved accounts. The Factor pays the company as the purchase price the net
amount of the account calculated by deducting from the gross amount of the account the discount, if any, Factor's factoring commission and all credits (including merchandise returns, allowances, and chargebacks and all other charges provided for under the
Factoring Agreement.
Optional provisions are attached at the end of the document for use in the Agreement if the Factor will be making cash advances to the company."


    Reference: http://www.lawvantage.com/description/finance_agreements/fac...
Beate Lutzebaeck
New Zealand
Local time: 16:37
Specializes in field
Native speaker of: Native in GermanGerman, Native in EnglishEnglish
PRO pts in category: 222
Grading comment
Many thanks for your detailed explanation. It has really helped me to understand the background to the contract!

Peer comments on this answer (and responses from the answerer)
neutral  Andy Lemminger: sure, but factoring is only one possibility for selling your receivables. E.g. you could sell just a single receivable (that would not be factoring then), etc.
6 mins

agree  stefana
2 days13 hrs
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