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A postman is a type of agent who sells property belonging to another called a principal. The postman is more often involved in the sale of goods than in the purchase of goods. A factor differs from a simple agent in that a postman must be in possession of the principal`s property, whereas an agent does not. The factorial-principal relationship is created by a contract. Both parties are bound by the terms of the agreement. The contract can be terminated by factor, by the customer or by law. A factor in a case contributes to its causation or outcome. In the area of negligence, factors or causal chain are important in determining whether liability arises from a particular act of the defendant. Once the unpaid invoices are paid by the Company`s customers to the factoring company, the latter will pay the Company the remaining 20% of the value of these invoices, less any pre-agreed fees. Factoring fees include fees and interest on the 80-85% paid in advance for collection.

Are you a lawyer? Visit our professional website ยป Although the cost of working with a factoring company is high, it can still be more cost-effective than giving customers a 6% discount to encourage early payment of invoices. A postman will provide money to a company almost immediately after a product is shipped, while prepayment discounts typically only bring in minor payments sooner than would be the case without the discount. Working with a single factor is much more likely to provide significant cash flow benefits than simply speeding up collection time. The growth of factoring suggests that many companies are finding it a cost-effective way to manage cash flow. A postman has a general lien over all commissions due to him and over all expenses duly incurred, including advances plus interest. A postman`s lien guarantees compensation, expenses, advances and debts incurred by the postman for the client. A postman only gives entitlement to a right of retention if he has fulfilled all contractual and legal requirements. He must be in actual or de facto possession of the property before the lien is seized; and if the operator has physical possession of the goods, he must have control of the property before a lien arises.

Once seized, a lien is only waived by express conditions or by clear implication, for example: if the postman acts in a manner inconsistent with his continuation. Fraud or misconduct in the execution of the client`s transactions are other reasons for waiving a privilege. A postman may assert his lien by retaining the entrusted property until his claims are liquidated, or he may sell the property to satisfy his claims and return the surplus to the principal. Factoring companies typically include a range of accounts receivable services as part of their overall performance. These services include things like accounting, debt collection, and credit checks. By reducing the internal costs of managing these tasks, it is more likely that a company will be able to justify the cost of working with a factoring company. 1. Commercial agent appointed by a principal to sell the goods delivered to him for that purpose for and on behalf of the principal, but generally in his own name, who is responsible for the possession and control of the goods and is remunerated by a commission commonly known as “factoring”.

Howland v. Waldmeister, 60 N.Y. 30; In re Rabenau (D. C.) 118 Fed. 474; Lawrence v. Stonington Bank, 6 Conn. 527; Graham v. Duckwall, 8 Bush (Ky.) 17. A letter carrier is an agent who, in the exercise of an independent remedy, is engaged by another agent to sell real property for Hiin and is possessed or controlled by the latter of the property or is authorized to take payment thereof from the buyer. Code Cal factoring is a form of financing whereby a company sells its receivables to a third party or to a “factor company” at a discounted price. Under this agreement, a factor company agrees to provide financing and other services to the selling company in exchange for interest and fees on the money it has advanced against the seller`s claims.

Companies that need liquidity can thus secure about 80% of the face value of their receivables. In rare cases, a higher percentage may be guaranteed, but in most cases, 20% of the value of receivables is held in reserve until receivables are collected. The Dutch East India Company and the British East India Company were based on factors throughout Asia. In China and Japan in the 18th and early 19th centuries, trade was confined to small ghettos: the Dutch factory in Dejima, an island off Nagasaki, and the Thirteen Factories and Shamian Island areas of Guangzhou. FindLaw.com Free and reliable legal information for consumers and legal professionals A factor is a type of trader who receives and sells goods on commission, called factoring. One factor is a commercial fiduciary who does business on his own account and does not disclose his principal. A factor differs from a commission dealer in that a factor orders goods (or ownership documents that represent goods, such as a bill of lading), but a commission dealer uses samples to sell goods that are not in his possession. [1] In Scots law, a judicial factor is a type of trustee appointed by the Court of Session to administer an estate, for a ward (called a pupil) until a guardian (called a guardian) can be appointed (factor loco tutoris), for a person who is incapax, or for a partnership that cannot function. Various institutions, including bank subsidiaries and financial companies, offer factoring services.

These companies can be found by various methods. The Commercial Finance Association offers a list of its members and their online services to www.cfa.com. Many factoring companies also advertise in the local yellow pages under headings such as “factors,” “trade finance,” “accounts receivable financing,” or “billing service.” The factoring process varies from agreement to agreement, but the basics are similar in most situations.