A Factoring Agreement is a legal contract that defines the relationship between a business (the client) and a factoring company that purchases the business's accounts receivable. This template provides a comprehensive framework covering essential elements such as the scope of services, payment terms, fees, rights and obligations of both parties, confidentiality clauses, and dispute resolution mechanisms. It ensures clarity and protects interests by specifying procedures for invoice submission, advance payments, recourse conditions, and termination. Suitable for businesses seeking to improve cash flow by selling invoices, this template helps create professional, enforceable agreements tailored to factoring transactions.
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