What are the dangers of future receivables loan
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What are the dangers of future receivables loan
We are looking at getting a short term
loan for our business. The contract that
they need us to sign is a future
receivables contract.
Asked on October 20, 2018 under Business Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Read the contract: what happens if you default on the loan--can they take of your receivables, for example, then the actual amount of the loan? What is the interest rate you are paying? When do you have to repay--is it realistically feasible for you? The dangers are to found in the proposed terms of the loan and loan agreement: is this a loan you can repay? And if you don't, can you afford the cost of non-payment.
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